Near-monies:
A. include all financial and real assets that can be easily converted into currency.
B. are certain highly liquid financial assets that do not function directly as a medium of
exchange but can be readily converted into M1.
C. are excluded from M2 because they are highly liquid.
D. are defined as monetary balances that are immediately available, at zero cost, for
household and business transactions.
B. are certain highly liquid financial assets that do not function directly as a medium of
exchange but can be readily converted into M1
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Here is what we know about a household: wages $25,000, unemployment insurance benefits $3,000, dividend income $4,000, income tax $5,000. What is the contribution to GDP of this household following the expenditure approach?
A) $24,000 B) $25,000 C) $28,000 D) $29,000
While pollution regulations yield the benefit of a cleaner environment and the improved health that comes with it, the regulations come at the cost of reducing the incomes of the regulated firms' owners, workers, and customers. This statement illustrates the principle that
a. trade can make everyone better off. b. rational people think at the margin. c. people face tradeoffs. d. people respond to incentives.
Every economy has a(n) _______ given by the fundamental factors of growth.
A. actual inflation rate B. actual growth rate C. potential growth rate D. potential inflation rate
Property owners move scarce resources toward the production of goods most valued by society because:
A. firms attempt to maximize profits. B. government controls the allocation of resources. C. managers are solely pursuing the interests of society. D. consumers demand inexpensive goods and services.