Sam has $500 in traveler's checks. He cashes a $100 traveler check, deposits $150 into his checking account at a Savings and Loan Association, and deposits the remaining $250 into a savings account at a credit union. Immediately, ________.
What will be an ideal response?
A) M1 decreases by $250 and M2 does not change
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The underground economy
A) is measured by government officials through tax returns. B) is difficult to describe but easy to measure. C) includes production that uses illegal workers who are paid less than minimum wage. D) includes mining production. E) is estimated by the government and the estimate is part of official GDP.
A system of economic organization in which the ownership and control of productive capital assets rests with the state and in which resources are allocated through central planning and political decision making is called
a. socialism. b. a market economy. c. a corporate economy. d. capitalism.
Which of the following would most likely cause and increase in the nominal GDP?
A. Constant output and decreasing price levels B. Constant output and increasing price levels C. Increasing output with greater decreases in price levels D. Decreasing output and decreasing price levels
What is the real balances effect, and how does it explain the shape of the aggregate demand curve?
What will be an ideal response?