Susan just sold her text books for $200 cash and deposited the cash she received in her checking account. This transaction has
A) increased the quantity of M1.
B) decreased the quantity of M1.
C) increased the quantity of M2.
D) decreased the quantity of M2.
E) not changed either M1 or M2.
E
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Refer to Figure 13-11. What is the productively efficient output for the firm represented in the diagram?
A) Q1 units B) Q2 units C) Q3 units D) Q4 units
According to strategic trade policy, international trade largely involves firms that:
a. enjoy monopolistic power in the domestic market. b. have a high initial cost of production. c. pursue economies of scale. d. have high opportunity costs. e. generate adequate employment in the domestic economy.
One of the defining characteristics of a perfectly competitive market is
a. a small number of sellers b. a large number of buyers and a small number of sellers c. a standardized product d. significant nonprice competition among firms e. an inefficient information system
If left alone, a natural monopoly will
a. earn normal profits b. earn maximum economic profits c. produce where P = ATC d. face competition from new entrants e. go out of business