The "crowding out" effect states that government spending pushes up interest rates and reduces private investment spending

Which of the following is TRUE of M2?

A) It is larger than M1. B) It excludes savings deposits. C) It does not include highly liquid components of the money supply. D) It is less than M1.

If a monopsonist offers a wage of $6, he finds that 1,200 people are willing to work for him. This means that the

a. marginal labor cost is $6 b. marginal labor cost is $200 c. total labor cost is $1,200 d. total labor cost is $7,200 e. $6 wage is too high