Which of the following statements accurately describes the two measures of the money supply?
A) The two measures do not move together, so they cannot be used interchangeably by policymakers.
B) The two measures' movements closely parallel each other, even on a month-to-month basis.
C) Short-run movements in the money supply are extremely reliable.
D) M2 is the narrowest measure the Fed reports.
A
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All else constant, as the price elasticity of demand for a good at the equilibrium price decreases, the amount of consumer surplus derived from purchasing the equilibrium quantity of the good increases
Indicate whether the statement is true or false
The price and wage freeze imposed by President Nixon were totally successful in eliminating inflationary pressures in the United States
Indicate whether the statement is true or false
Experiments show that when real people play the ultimatum game, starting with $100,
a. Player A usually proposes giving Player B more than $50. b. Player B usually accepts Player A's proposal if Player A proposes giving Player B $30 or $40. c. players show themselves to be rational wealth-maximizers. d. Player B will usually demand an even split.
Which of the following best explains an economic criticism of unregulated monopolists?
A. Monopolists do not try to minimize their fixed costs of production. B. Monopolists produce where marginal revenue is greater than marginal costs. C. Monopolists attempt to produce too many products, and as a result, their prices are high, and consumer's waste time trying to choose between too many options. D. Monopolists restrict output, and as a result, they fail to produce units that are valued more than the marginal cost of producing them.