The purchase of VCU2 by Tomas Tiergarten, a private resident, causes the nation's:
a. M2 money multiplier to remain the same.
b. M2 money supply to rise.
c. M2 money multiplier to rise.
d. Monetary base to rise.
.A
You might also like to view...
One way for banks to reduce the principal-agent problems associated with trading activities is to
A) set limits on the total amount of a traders' transactions. B) make sure that the person conducting the trades is also the person responsible for recording the transactions. C) encourage traders to take on more risk if the potential rewards are higher. D) reduce the regulations on the traders so that they have more flexibility in conducting trades.
The economy's current rate of interest is 10 percent and a firm has $10,000 of owner-invested capital. Its total revenue is $5,000 and the firm's explicit costs are $3,000. From this we know that this firm's
A) accounting profit is $500. B) economic profit is $2,000. C) accounting profit is $12,000. D) economic profit is $1,000.
The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
Which of the following is TRUE about exchange rates?
A) They should not be volatile because they will determine the economic climate. B) They are generally more volatile than stock prices. C) They are more volatile than several underlying factors that move them such as money supplies and fiscal variables. D) They should be volatile because to correct price signals they adjust quickly in response to economic news, but they are generally less volatile than stock prices. E) They never overreact to economic news.