If people withdraw $10 million from the nation's money market mutual funds and redeposit the funds in various checkable and debitable accounts, then
A) M1 and M2 will remain unchanged.
B) M1 will increase, M2 will remain unchanged.
C) M1 will increase, M2 will decrease.
D) M1 and M2 will increase.
Ans: B) M1 will increase, M2 will remain unchanged.
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Collusion always involves firms engaging in a
A) vertical merger. B) horizontal merger. C) cooperative game. D) noncooperative game.
The irrelevance of monetary changes for real variables is called monetary neutrality. Most economists accept monetary neutrality as a good description of the economy in the long run, but not the short run
a. True b. False Indicate whether the statement is true or false
The optimal level of any activity is that level for which
A. total benefit exceeds total cost by the greatest amount. B. marginal benefit exceeds marginal cost by the greatest possible amount. C. both a and b D. none of the above
Selling the same product under different brand names allows a firm to price discriminate as long as
A) customers know the products are identical. B) customers do not know the products are identical. C) the products really are not the same. D) the firm lets customers know that the products are identical.