Aggregate Demand (AD) = C + I + G + (X-M). I = ________.

When a firm is regulated so that its price enables it to earn a specified target percent return on its capital, the regulation is called

A) rate of return regulation. B) price cap regulation. C) earnings limited regulation. D) target pricing regulation.

If households in the economy decide to take money out of checking account deposits and put this money into savings accounts, this will initially

A) decrease M1 and decrease M2. B) increase M1 and decrease M2. C) decrease M1 and not change M2. D) decrease M1 and increase M2.