Which of the following statements accurately describes the two measures of the money supply?
A) The two measures do not move together, so they cannot be used interchangeably by policymakers.
B) The two measures' movements closely parallel each other, even on a month-to-month basis.
C) Short-run movements in the money supply are extremely reliable.
D) M2 is the narrowest measure the Fed reports.
A
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Labor productivity depends on the
a. quality of the labor b. the effectiveness of government c. the proportion of the labor force that is unionized d. the size of the economy e. All of the answers are correct
A decrease in net taxes:
a. raises aggregate expenditure by raising disposable income, thereby increasing consumption. b. raises aggregate expenditure by raising disposable income, thereby decreasing consumption. c. lowers aggregate expenditure by lowering disposable income, thereby decreasing consumption. d. lowers aggregate expenditure by lowering disposable income, consumption remaining constant. e. has no effect on aggregate expenditure.