The various money supply measures (M1 and M2) are used to distinguish the
A. Speed with which banks transfer funds between themselves.
B. Speed with which banks transfer funds between savings and checking accounts.
C. Liquidity and accessibility of assets.
D. Rate at which money flows through the economy.
Answer: C
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In the diagram of the decision tree, what lies at the bottom, the roots?
a. The basic decision b. The alternatives c. Resources d. Values
Which of the following terms refers to the time it takes to get a fiscal policy bill passed?
a. recognition lag b. implementation lag c. legislative lag d. budgetary lag
The diagram concerns supply adjustments to an increase in demand (D 1 to D 2 ) in the immediate market period, the short run, and the long run. On the basis of this illustration, we can conclude that:
A. short-run adjustments are more economically efficient than are long-run adjustments.
B. the amount of time producers have to adjust to a change in demand is not a determinant of
supply elasticity.
C. supply is more elastic the greater the amount of time producers have to adjust to a change
in demand.
D. supply is less elastic the greater the amount of time producers have to adjust to a change
in demand.
Corn is produced in a perfectly competitive market. The demand for ethanol increases. This will cause the individual corn farmer's marginal revenue to ________ and their profit-maximizing level of output to ________.
A. increase; increase B. increase; decrease C. decrease; increase D. decrease; decrease