Suppose you transfer $1,000 from your checking account to your savings account. How does this action affect the M1 and M2 money supplies?

a. M1 and M2 are both unchanged.
b. M1 falls by $1,000 . and M2 rises by $1,000.
c. M1 is unchanged, and M2 rises by $1,000.
d. M1 falls by $1,000 . and M2 is unchanged.

d

Economics

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If a rent ceiling is set below the equilibrium price, thus creating a ________, housing may be allocated by increasing search activity or creating a ________

A) shortage; black market B) shortage; free market C) surplus; black market D) surplus; open market E) surplus; free market

Economics

In considering the financial history of the transcontinental railroads, the text argues that: a. there was surprisingly little corruption given the corruption in other walks of life at the time. b. there was surprisingly little corruption, mostly involving the buying off of federal regulators when rate controls became unreasonable. c. there was a great deal of corruption, mostly in the form of

high fees chargedimmigrants for what was really free federal land. d. there was a great deal of corruption, mostly because construction companies were run by insiders.

Economics