Suppose you cash in a Certificate of Deposit (a small time deposit) to acquire the traveler's checks you'll need for your vacation. What happens to M1 and M2?
A) M1 and M2 both increase.
B) M1 stays the same and M2 increases.
C) M1 increases and M2 decreases.
D) M1 increases and M2 stays the same.
D
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The most common reason for the existence of oligopolies is
A) ease of entry. B) economies of scale. C) diseconomies of scale. D) advertising.
According to the above table, the four-firm concentration ratio of this industry is
A) 69.2 percent. B) 35.1 percent. C) 66.7 percent. D) 67.5 percent.
If the Japanese yen depreciates against the U.S. dollar
A) the price of Japanese imports to the United States decreases. B) the price of United States exports to Japan decreases. C) the price of Japanese imports from the United States will decrease. D) there is no change in the price of Japanese exports to the United States.
The infant-industry argument about tariffs argues that:
a. it is unfair to levy tariffs on items intended for use by infants. b. tariffs should be levied on foreign products that compete with new domestic industries only in the short run. c. if a newly established domestic industry can survive in the short run, a tariff should be levied to protect it from foreign competition in the long run. d. permanent tariffs should be levied on foreign products that compete with those produced by newly established domestic industries.