The M1 money supply is composed of:
A. All coins and paper money held by the general public and the banks
B. Bank deposits of households and business firms
C. Bank deposits and mutual funds
D. Checkable deposits and currency in circulation
D. Checkable deposits and currency in circulation
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Refer to Table 11.1. If exports increase by 20 (X = 100), what is the new equilibrium level of output?
A) 1,825 B) 2,425 C) 7,300 D) 9,700
When the tax rate increases, the tax revenue
A) always increases. B) does not change. C) always decreases. D) may increase or decrease.
According to the graph shown, the consequence of expansionary fiscal policy is:
A. inflation.
B. deflation.
C. a greater level of potential output.
D. a lower level of potential output.
A public good such as a streetlight will not be provided by a private profit-seeking company because
a. the streetlight is also a merit good b. the streetlight is an exclusive and rival good c. it takes a government to maintain the streetlights, e.g., changing bulbs d. private companies can't compete with government in producing streetlights e. the benefit a person derives from having streetlights are less than the cost of installing streetlights