Widespread use of credit cards
a. will increase the M1 money supply figures.
b. will increase the M2 money supply figures but not those for M1.
c. tends to reduce the average quantity of money that people will choose to hold.
d. tends to increase the average quantity of money that people will choose to hold.
C
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According to the Application, the market price of meteorites varies from a few dollars per gram to hundreds of dollars per gram. In a market system like the market for meteorites, prices vary due to
A) government intervention in the pricing of the products. B) outsourcing. C) the lack of accounting rules in this market. D) the relative scarcity, or rarity, of the product.
According to the misperceptions theory of the short-run aggregate supply curve, if a firm thought that inflation was going to be 4 percent and actual inflation was 2 percent, then the firm would believe that the relative price of what it produces had
a. increased, so it would increase production. b. increased, so it would decrease production. c. decreased, so it would increase production. d. decreased, so it would decrease production.
Consider the following sequence of events: price level ? ? demand for money ? ? equilibrium interest rate ? ? quantity of goods and services demanded ? ?his sequence explains why the
a. money-supply curve is vertical. b. aggregate-demand curve shifts leftward in response to a monetary injection. c. aggregate-demand curve shifts rightward in response to a monetary injection. d. aggregate-demand curve slopes downward.
The government's share of employment peaked during the
A. 1960s. B. 1970s. C. 1940s. D. 1930s.