If Ms. Anniston transfers $1,000 from her checking account to her money market account, then
a. M1 falls and M2 remains the same.
b. M1 falls and M2 rises.
c. both M1 and M2 rise.
d. M1 remains the same and M2 rises.
a
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Which of the following assets are counted in M2?
A) gold B) balances in retail mutual funds accounts C) value of outstanding bonds D) lines of credit offered by commercial banks
When economies of scale are large, firms can reduce their average total cost by:
A. eliminating the bureaucratic costs. B. merging into even larger firms. C. hiring professional managers. D. selling off their subsidiaries.
The purpose of antitrust policy is to:
A. promote competition among firms. B. increase profits to firms. C. protect domestic firms from foreign trade. D. achieve scale economies in production.
In the long run, demand-pull inflation leads to:
A. Higher unemployment and higher price level B. Lower real wages and higher unemployment C. Lower real output and no change in unemployment D. Higher price level and no change in real output