In an economy, there is $200 million in currency held outside banks, $100 million in traveler's checks, $250 million in currency held inside the banks, $300 million in checking deposits, and $600 million in savings deposits
The value of M1 is ________. A) $750 million
B) $1,200 million
C) $1,150 million
D) $600 million
D
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An explanation for the slowdown in U.S. productivity growth in the 1973–1995 period was higher oil prices caused by
A. the CIA. B. the WTO. C. the IMF. D. OPEC.
If people stand to produce at lower cost when specializing and producing in larger quantities
a. they cannot gain from trade because each one is just as potentially productive as another. b. they cannot gain from trade because most people's wants can be easily satisfied with what they can produce themselves. c. they cannot gain from trade if they have similar tastes. d. they can gain from trade by specializing and increasing productivity.
When free entry is one of the attributes of a market structure, economic profits are: a. generally driven to zero in long-run equilibrium. b. generally negative for all firms
c. generally zero in the short run. d. always positive.
Ceteris paribus, if the average price level falls, then the _____ effect will result in _____ in the purchases of goods and services.
A. Real balances; an increase B. Foreign trade; a decrease C. Interest rate; a decrease D. Cost; an increase