If Julia deposits $2,000 (which she has until now kept in her closet as cash) in her savings account, then the M1 money supply will decrease
a. True
b. False
Indicate whether the statement is true or false
True
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In 1984, British Prime Minister Margaret Thatcher decided to shut down so-called "uneconomic" coal mines owned by the government. The National Union of Mineworkers protested, asserting that there was enough coal in the mines to continue current levels of production for years. Thatcher implicitly argued that her decision was economically sound because, at any practical level of output, for each
"uneconomic" mine, a. MC > AC. b. for every input, MPP > APP. c. MC > MR. d. AC > MC.
Government is on the:
A. demand side of factor markets and the supply side of goods markets. B. supply side of factor markets and the demand side of goods markets. C. demand side of both factor markets and goods markets. D. supply side of both factor markets and goods markets.
The Fed
A. lends money to the public. B. lends money to foreign governments. C. issues deposits to the public. D. clears inter-bank payments.
Which of the following contributed to the downfall of the Soviet Union in 1991?
A) the lack of a strong dictator who could coordinate economic activities B) an overabundance of high-quality goods and services C) an inability to produce low-cost consumer goods that households wanted D) government dissatisfaction with high living standards and political freedom