When cash is withdrawn from a checkable-deposit account at a bank:
A. The money supply M1 increases
B. The money supply M1 decreases
C. The money supply M1 does not change but its composition changes
D. The composition of money supply M1 does not change
C. The money supply M1 does not change but its composition changes
Economics
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In the Solow model, if total saving exceeds depreciation,
A) gross investment is negative. B) real wages decrease. C) capital deepening stops. D) capital stock increases.
Economics
At the beginning of the year, Tom's Tubes had a capital stock of 5 tube inflating machines. During the year, Tom scrapped 2 old machines and purchased 3 new machines. Tom's net investment for the year totaled
A) 1 machine. B) 2 machines. C) 3 machines. D) 6 machines.
Economics