Which of the following is true?
a. A majority of U.S. money, whether M1 or M2, is in the form of legal tender
b. If a bank lends out its excess reserves of $90,000, at the time the loan is made, the money supply will increase by $90,000.
c. Reserve requirements exist primarily to eliminate bank runs.
d. When there are two forms of money available, people prefer to spend the form of money that is more valuable.
b
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An example of a randomized controlled experiment is when
A) households receive a tax rebate in one year but not the other. B) one U.S. state increases minimum wages and an adjacent state does not, and employment differences are observed. C) random variables are controlled for by holding constant other factors. D) some 5th graders in a specific elementary school are allowed to use computers at school while others are not, and their end-of-year performance is compared holding constant other factors.
Inflation is an increase in:
a. prices of all products in the economy. b. homes, autos and basic resources. c. the general price level of products. d. none of these.
When a business finds its obligations are ended,
a. all costs are variable costs b. this is the short run c. the market price of the output rises d. the marginal cost curve shifts up e. it may have to continue operations to minimize losses
Keynesians and non-Keynesians would largely agree on which one of the following statements?
a. Expansionary fiscal policy will tend to substantially increase current real output. b. Proper timing of discretionary fiscal policy is difficult to achieve. c. The use of discretionary fiscal policy is an important stabilization tool. d. Market forces will automatically direct the economy toward full employment.