Spending VCU4 on real-world goods and services causes the nation's:
a. Monetary base to remain the same.
b. M2 money supply to fall.
c. M2 money multiplierto fall.
d. M2 money supply to rise.
.A
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A bank is legally required to hold a fraction of its ________ as ________
A) loans; required reserves B) deposits; required reserves C) loans; excess reserves D) deposits; excess reserves
Which of the following can be described as direct finance?
A) You take out a mortgage from your local bank. B) You borrow $2500 from a friend. C) You buy shares of common stock in the secondary market. D) You buy shares in a mutual fund.
A decrease in federal income tax rates is an example of fiscal policy that affects GDP through consumption adjustments
a. True b. False Indicate whether the statement is true or false
Traditional economic models ________ the fact that people sometimes regret making decisions with perfectly predictable consequences.
A. can easily explain B. are supported by C. account for D. cannot explain