Suppose you transfer $1,000 from your checking account to your savings account. How does this action affect the M1 and M2 money supplies?
a. M1 and M2 are both unchanged.
b. M1 falls by $1,000 . and M2 rises by $1,000.
c. M1 is unchanged, and M2 rises by $1,000.
d. M1 falls by $1,000 . and M2 is unchanged.
D
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Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for mustard and that bratwurst and mustard are complements. What panel describes what happens in this market when the price of bratwurst falls?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
An increase in the demand for orthodontic services leads to
A) an increase in the supply of orthodontists. B) a rise in the rates of dental insurance. C) lower prices for orthodontic care. D) an increase in the demand for orthodontists.
Health care expenditures in the U.S. made up approximately ____ of the total value of the GDP in 2010
a. 20.1 percent b. 17.9 percent c. 13.5 percent d. 9.8 percent
Which of the following will most likely occur in an economy if more money is demanded than is supplied?
A. The amount of investment spending will increase. B. Interest rates will decrease. C. Interest rates will increase. D. The demand curve for money will shift to the left. E. The demand curve for money will shift to the right.