As banks lend money in the form of checking accounts:
a. M2 money supply rises when the loan is made and then falls when the loan is spent.
b. M2 money supply rises when the loan is made and then falls when the loan is cleared.
c. M2 money supply does not change.
d. M2 money supply rises when the loan is made and stays at that level until the loan is repaid.
e. M2 money supply rises when the loan is made and permanently stays higher until the central bank reverses it.
.D
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If in the short run a firm's total product is increasing, then its:
A. marginal product must also be increasing. B. marginal product must be decreasing. C. marginal product could be either increasing or decreasing. D. average product must also be increasing.
The labor force equals the number of people:
A. both employed and unemployed. B. employed. C. aged 16 years and older. D. employed, unemployed and discouraged.