If a sizeable amount of U.S. currency is held outside of the United States,
a. the accuracy of the M2 money supply figures will be improved, but there will be no impact on M1.
b. the accuracy of the M1 money supply figures will be improved, but there will be no impact on M2.
c. the money supply figures, particularly those for M1, will be less reliable.
d. the money supply figures of the U.S. will not be affected because the funds are held outside the U.S.
C
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If real disposable income increased by $10,000 and real consumption spending increased by $7,500, what is the marginal propensity to consume (MPC)?
a. 0.25 b. 1.0 c. 0.75 d. 1.75 e. 1.25
The term discouraged worker refers to an individual who: a. prefers full-time employment but works only part time
b. has given up looking for a job because he has lost the hope of getting a new job. c. is jobless because of the seasonal nature of his job. d. is jobless because of a recession in the economy.