If banks move a substantial portion of depositors' money from interest-earning checking accounts into money-market deposit accounts, how will the money supply measures be affected?
a. M1 will become smaller, and M2 will become larger.
b. Both M1 and M2 will increase in size.
c. Both M1 and M2 will decrease in size.
d. The size of M1 will be reduced, but M2 will be unchanged.
D
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Refer to the scenario above. What will be the capital stock in the economy in the current year, if the capital stock in the last year was $1,000?
A) $1,400 B) $1,200 C) $1,600 D) $1,800
The Keynesian analysis of fiscal policy argues that:
a. fiscal policy should generally be expansionary except during periods of economic recession. b. fiscal policy should generally be restrictive except during inflationary booms. c. the federal budget should be balanced annually except during war. d. the federal budget should be used to maintain aggregate demand at a level consistent with full employment.
Which part of this definition for GDP is incorrect? GDP measures the:
a. Wholesale value of, b. All final goods and services, c. Produced for the market, d. By domestically owned or foreign-owned resources, e. within a nation's geographic borders.
How many members are there of the U.S. Senate Committee on Banking, Housing and Urban Affairs?
A. 15 B. 20 C. 21 D. 28