Which of the following is NOT a flow variable?
A) saving B) consumption C) investment D) savings
D
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Assuming all excess reserves are loaned out, currency holdings by the public are zero, and a reserve ratio of 2 percent, an initial deposit of $500 will lead to a total increase in deposits of
A) $250. B) $5,000. C) $25,000. D) $50,000.
In the Keynesian framework, as long as output is ________ the equilibrium level, unplanned inventory investment will remain ________, firms will continue to lower production, and output will continue to fall
A) below; negative B) above; negative C) below; positive D) above; positive
As a result of the housing market crash overall output fell, and prices:
A. decreased because the magnitude of shift was larger for aggregate demand than it was for aggregate supply. B. increased because the magnitude of shift was larger for aggregate demand than it was for aggregate supply. C. decreased because the magnitude of shift was smaller for aggregate demand than it was for aggregate supply. D. increased because the magnitude of shift was smaller for aggregate demand than it was for aggregate supply.
The M2 money supply
a. includes large denomination time deposits which are part of M1 b. excludes checking accounts which are part of M1 c. does not include money market mutual accounts because they are part of M1 d. includes demand deposits and small denomination time deposits because each ispart of M 1and M2, respectively e. includes large denomination repurchase agreements which are part of M1