If an individual uses money from a demand deposit account to purchase a U.S. savings bond
A) M1 decreases and M2 stays the same.
B) M1 stays the same and M2 increases.
C) M1 stays the same and M2 stays the same.
D) M1 decreases and M2 decreases.
D
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Which of the following is NOT an injection?
A) The state of Illinois builds a new courthouse. B) Kansas farmers sell 1 million bushels of wheat to Russia C) The Smithsonian Institute purchases Chris Evert Lloyd's tennis racket. D) An accountant purchases a new personal computer for use in his office.
The meaning of interdependence in a monopolistically competitive market is
A) that it is difficult for firms to get together to collude. B) that products produced by firms will be good substitutes. C) that firms will not take into account the reaction of rival firms. D) that price rigging commonly occurs.