Assuming no other changes, if balances in money market deposit accounts increase by $50 billion and small-denominated time deposits decrease by $50 billion, the:
A. M1 and M2 money supplies will not change.
B. M2 money supply will increase.
C. M1 money supply will decline.
D. M2 money supply will increase and the M1 money supply will decrease.
A. M1 and M2 money supplies will not change.
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The prices of related goods matters when determining supply because it affects:
A. the opportunity cost of production. B. whether or not your good will sell. C. the competition in the market. D. the availability of substitute goods.
In the simple circular flow model:
A. businesses are sellers of resources and demanders of products. B. businesses are sellers of both resources and products. C. households are sellers of resources and demanders of products. D. households are sellers of products and demanders of resources.
A consumer's ________________ line or constraint shows various combinations of two products that can be purchased with a specific amount of income.
Fill in the blank(s) with the appropriate word(s).
An economic rationale for government protection of small investors is that:
A. many small investors cannot adequately judge the soundness of their bank. B. there is inadequate competition to ensure a bank is operating efficiently. C. banks are often run by unethical managers who will often exploit small investors. D. large investors can better afford losses.