In defining money as M1, economists exclude time deposits because
A. they do not directly serve as a medium of exchange.
B. they are not recognized as legal tender.
C. they have no intrinsic value.
D. they earn an interest for their holders.
Answer: A
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Which of the following is NOT a barrier to entry for a monopoly?
A) economies of scale for the relevant range of output B) a patent on the product being sold C) the ability to charge a price that is above marginal cost D) receiving a public franchise
"A bank can only use its excess reserves to make loans, while required reserves can only be used to buy U.S. government securities." Explain whether the previous statement is correct or incorrect
What will be an ideal response?
Which of the following statements best illustrates "Luddite reasoning"?
A. Labor is necessary for building and maintaining machines, and so increased demand for machines increases the demand for labor. B. Technology increases total output, and so it will increase the demand for labor. C. Technology makes it possible to replace workers with machines, and so it will decrease the overall demand for labor. D. New technology changes the type of labor demanded.
For which of the following markets would the fallacy of composition least likely apply?
A. Poultry market B. Labor market C. Market for savings and investment D. World market for oil