If we look at the components of M2, we find that
A) money market funds are the largest component.
B) savings deposits are the largest component.
C) currency is the largest component.
D) banks' reserves are the largest component.
E) loans are the largest component.
B
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The table above gives the demand schedule for snow peas. The demand curve for snow peas is a straight line and so the elasticity of demand is
A) 1 at all prices. B) the same at all prices but not 1. C) higher at higher prices. D) lower at higher prices.
An example of cyclical unemployment is a(n):
a. textile worker permanently laid off due to job lost to imports. b. autoworker who is temporarily laid off due to a decline in demand for cars. c. engineer permanently laid off due to advances in technology. d. computer programmer who leaves one job and accepts a new job.
Which of the following statements captures the meaning of transitivity of preferences?
a. If A is preferred to B, then B is less preferred than A. b. If A is preferred to B, and B is preferred to C, then A is preferred to C. c. If A is preferred to B and B is preferred to C, then the preference for A over B is stronger than the preference for B over C. d. If A is preferred to C, then there exists B such that A is preferred to B and C is preferred to A.
How can the demand for one good be affected by increased demand for another one?
(A) When goods are bought together, increased demand for one will decrease demand for the other. (B) A drop in price for a good will increase demand for the good and its substitute. (C) If goods are used together, increased demand for one will increase demand for the other. (D) If goods are substitutes for each other, increased demand for one will increase demand for the other.