Which of the following is not a component of M1?
A) currency held outside banks
B) traveler's checks
C) savings deposits
D) checkable deposits
C
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Explain why Relative PPP is useful when comparing countries that base their price levels on different product baskets
What will be an ideal response?
In the above figure, assume d1 is the demand curve faced by this firm. Which is TRUE?
A) This firm is earning an economic profit. B) This firm is experiencing an economic loss. C) This firm is breaking even. D) This firm's total costs equal EJA0.
When a country's inflation rate varies substantially from year-to-year and is therefore difficult to predict, this will
a. reduce the volume of trade and the gains derived from it. b. reduce the risk accompanying investment. c. encourage entrepreneurs to innovate and develop better products. d. increase the level of foreign investment in the country.
Samantha is at a friend's house for dinner. Her friend says "I can re-heat either the lasagna or the fried rice." Samantha likes them both, but chooses the fried rice. Does Samantha's choice entail a cost?
A) No—as long as her friend didn't charge Samantha for the meal. B) Yes—Samantha sacrificed the opportunity to eat lasagna. C) Yes—as long as Samantha reimburses her friend for the cost of re-heating the meal. D) Both A and C above.