The monetary aggregate, M1, increases when
A) an individual cashes a check written by a business.
B) an individual purchases clothes with a debit card.
C) an individual switches funds from a savings account to a checking account.
D) an individual buys groceries with a credit card.
Ans: C) an individual switches funds from a savings account to a checking account.
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Normative analysis is very important to public finance because _____
a. public policy enacted by government is the result of voting by individuals b. positive analysis is full of value judgments c. we should be concerned with how the world works d. voluntary exchanges are economically efficient
If the MPC is 4/5, the multiplier is 5/4
a. True b. False Indicate whether the statement is true or false
In the Cobb-Douglas production function Y = AK3/4L1/4,
A) capital is a more expensive input than labor. B) capital is more plentiful than labor. C) diminishing returns to capital are three times greater than are diminishing returns to labor. D) capital has a larger share in national income than does labor.
The Internet was first developed in the
A. business sector. B. government sector. C. corporate sector. D. college dorm room of Bill Gates.