Two goods are Hicks (net) substitutes if a rise in the price of one causes a(n):
a. decline in the quantity demanded of the other holding nominal income constant.
b. increase in the quantity demanded of the other holding nominal income constant.
c. decline in the quantity demanded of the other holding utility constant.
d. increase in the quantity demanded of the other holding utility constant.
d
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Cash assets of a commercial bank consist of
A) notes and coins in the bank's vault, a deposit account at the Fed and loans to other banks. B) notes and coins in the bank's vault , a deposit account at the Fed and any gold held for the bank at Fort Knox. C) vault cash, a deposit account at the Fed and the bank's stock holdings. D) vault cash, a deposit account at the Fed and the value of its depositors' accounts.
If people expect the price of packaged coffee to rise next week, coffee demand will
a. decrease now b. increase now c. stay the same now and increase next week d. stay the same now and decrease next week e. stay the same now and next week
Which of the following is included in M1?
A. Savings accounts B. Money market deposit accounts C. Money market mutual funds D. Travelers’ checks E. None of the above is included.
Scarcity limits the volume of goods that an economic system can produce but does not limit the production of services.
Answer the following statement true (T) or false (F)