A payment over and above that necessary to call forth a resource is called

"Since checking accounts now pay interest they should not be included in the money supply." Given that checks are the major medium of exchange, this statement is false because

A) checking accounts are primarily used for savings in the current year. B) the interest rate on checking accounts is lower than on other accounts. C) the demand for real balances is negatively related to interest rates. D) money is money.

The production possibilities curve for an economy that experiences a constant opportunity cost of production is linear (a straight line)

a. True b. False Indicate whether the statement is true or false