Of the following, the largest is
A) money market deposit accounts.
B) demand deposits.
C) M1.
D) M2.
D
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Assume the graph shown represents the market for button-up shirts and was originally in equilibrium with D and S. What type of shock might cause a shift from D to D2?
A. The price of buttons has increased.
B. The price of ties went up.
C. The price of sweatshirts went up.
D. Income has increased.
A charity that used to arrange matching charitable contributions, but no longer does, is likely to ________ the free-rider problem and lead to a ________ level of contribution to the public good.
A. reduce; smaller B. reduce; larger C. increase; smaller D. increase; larger
An import-export business that finds itself in a "short" foreign-currency position risks a financial loss if
A. the foreign currency depreciates (more than expected). B. the domestic currency depreciates (more than expected). C. it pays attention to exchange-rate forecasts. D. foreign demand for its product rises (more than expected).
In the market for yen, a decrease in the relative safety of U.S. investments tends to
A. cause no change in equilibrium price. B. increase demand. C. increase excess supply. D. decrease equilibrium price.