M2 includes:
a. Currency in circulation + Checking Accounts
b. Checking accounts plus Deposits at the central bank.
c. Currency in circulation + Reserves of financial intermediaries (e.g., banks) + Checking Accounts + Near Money.
d. Currency in circulation + Checking Accounts + Near Money.
e. Currency in circulation + Cash inside financial intermediaries + Deposits at the central bank + Checking Accounts + Near Money.
.D
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The first and biggest problem the EU faces in its expansion to the east is
A) the reform of its agricultural subsidy programs. B) the lack of democracy in the countries that are most likely to become members. C) the unwillingness of the new members to adopt EU rules. D) the lack of market economies in the countries that are most likely to become members. E) the unwillingness of citizens in the new member countries to migrate to higher income countries.
Which of the following did the Fed do during the recession of 2008-2009?
a. lowered the federal funds rate and sold securities and loans b. lowered the federal funds rate and purchased securities and loans c. raised the federal funds rate and sold securities and loans d. raised the federal funds rate and purchased securities and loans
According to public choice theory, which of the following is not a likely reason that government policy might benefit only a narrow interest group?
A. If the benefits to the narrow interest group are relatively large, they have an incentive to invest a lot of money and effort in lobbying government. B. If the costs of this policy are spread out among the general population, and are a very small burden for anyone person, then those paying the costs have little incentive to organize opposition. C. The additional rewards of a policy to the general population outweigh the additional costs that are imposed on a narrow interest group. D. Politicians follow their own self-interest and seek to maximize their reelection chances rather than promoting the best interests of society.
(Consider This) In "Slicing the Pizza," the shrinkage of the pizza refers to the:
A. fact that poor people are not helped by the income-maintenance system. B. efficiency losses—the losses of output and income associated with the tax-transfer system. C. tendency of rich people in developing nations to hoard their wealth overseas. D. failure of the Internal Revenue Service to collect all the tax revenues owed by taxpayers.