Spending VCU4 on real-world goods and services causes the nation's:
a. Monetary base to rise.
b. M2 money supply to fall.
c. M2 money multiplier to remain the same.
d. M2 money supply to rise.
.C
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Answer the following statement(s) true (T) or false (F)
1. The future value (FV) of a dollar is its present value (PV) plus the opportunity cost of not using that dollar in the present period. 2. The term, 1/(1 + r)t is known as the discount rate, where r represents the discount factor. 3. Present value determination is a procedure that corrects a value for the rate of inflation. 4. The discount rate used for public policy decision making is called the social discount rate. 5. Deflating refers to the process of converting a real value into its nominal value.
In a market for emission permits, firms that emit over their allowed limits
A) are forced to shut down. B) are taxed by the government for the amount of emissions. C) receive a subsidy for the amount of emissions. D) pay a price of these emissions.
If the Fed wants to fight unemployment, it would ______________
Fill in the blank(s) with the appropriate word.
Which of the following will cause a movement along the supply curve for oil?
A) new technology to drill oil from existing oil wells B) an increase in the price of oil C) an increase in the number of oil producers D) government tax on oil producers in Texas