Why are checking account balances included in the M1 definition of the money supply?
A. Checking account balances are a traditional form of money that predates paper money.
B. Checking account balances are used to make so many payments.
C. Checking account balances are backed by gold and silver.
D. Checking account balances pay interest.
Answer: B
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Shama is producing candles in a perfectly competitive market. When she produces 500 candles, her total cost is $250. If she produces one additional candle, her total cost increases to $260
In order to maximize her profit, she should produce the additional candle A) if the market price for a candle is $12. B) only if the market price exceeds $260 for a candle. C) only if the market price exceeds $250 for a candle. D) if the market price for a candle exceeds $0.50. E) if her price exceeds her average total cost.
Explain why current consumption is likely to respond less than one for one to changes in current income
What will be an ideal response?