Which of the following is a possible result of price confusion?
A. People are less able to take actions that mitigate the impact of monetary policy.
B. Sellers will face pressure to provide more accurate pricing information.
C. The price system becomes a less effective way to coordinate economic action.
D. The signals that prices send become clearer and more necessary.
Ans: C. The price system becomes a less effective way to coordinate economic action.
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Which of the following would lead to a change in the money measure, M1?
A) a customer purchases music downloads with a debit card B) a customer withdraws funds from her checking account to purchase a 6-month time deposit C) depositing a paycheck drawn against Bank of America into your checking account in Wells Fargo Bank D) interest payments by the Treasury on its debt
Household spending on education is included in
a. consumption, although it might be argued that it would fit better in investment. b. investment, although it might be argued that it would fit better in consumption. c. government spending, based on the fact that most higher-education students attend publicly-supported colleges and universities. d. None of the above is correct; in general, household spending on services is not included in any component of GDP.