Other things constant, a decrease in credit card balances would ____ M1 and ____ M2.
a. increase; increase

In the table above, if the cost of capital is $20 per day and an hour of labor is $15 per day, which method is economically efficient?

A) A B) B C) C D) D

If bonds and stocks are considered to be substitute goods, and the investors expect stock prices to drop in the near future, _____

a. the price of bonds will also decline b. the supply of bonds will increase c. the interest rate on bonds will decline d. the demand for stocks will increase e. the demand for bonds will decline