If a person withdraws $500 from his/her checking account and holds it as currency, then M1 will ________ and M2 will ________
A) not change; increase
B) not change; not change
C) decrease; increase
D) increase; decrease
E) decrease: decrease
B
You might also like to view...
Use the following graph to answer the next question.
Which point is not on the perfectly competitive firm's short-run supply curve?
A. E B. F C. G D. H
If Safeway reduced its grocery prices below cost in a particular metropolitan area and kept them there until all other grocery stores in the area had been forced into bankruptcy, Walmart would almost certainly sustain huge net losses
A) in the short run and the long run because grocery stores would reappear quickly when Walmart subsequently set high prices. B) in the short run but not in the long run because it could charge very high prices afterward. C) in the short run but not in the long run because the policy would lower Walmart's costs of buying from suppliers. D) only if the government enforced the antitrust laws in a fair and even-handed way.
Figure 10-5
In Figure 10-5, which graph best illustrates the situation of an economy near full employment that experiences an increase in autonomous consumer spending?
A. (1) B. (2) C. (3) D. (4)
A tariff has the effect of granting ____ a larger share of the domestic market.
A. domestic consumers B. foreign consumers C. domestic producers D. foreign producers