Checking account deposits are counted as part of the M1 money supply because
What will be an ideal response?
they are widely used as a means of making payment.
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One of the influences that the world economy has on U.S. aggregate demand comes from changes in
A) foreign income. B) world opinion. C) foreign aid. D) world pollution. E) foreign governments.
Dick has a dog (Spot) that likes to bark at night. Jane, who lives next door to Dick, must be at work every morning by six o'clock. Suppose that there is no noise ordinance that requires Dick to keep his dog quiet
Is there any Coase solution to this problem? Explain.
We have learned from this chapter that the real value of the debt is eroded by inflation and may be overestimated because of it and other factors. Do you feel that the debt will be a major concern during your working lifetime and retirement?
What will be an ideal response?
If goods are completely unrelated, their cross price elasticity will
A) be greater than one. B) be less than one. C) be equal to zero. D) be negative.