Unused lines of credit on credit cards are part of M2.

Unused lines of credit on credit cards are part of M2.
a. True
b. False
Indicate whether the statement is true or false

QUESTION 2

In Karl Marx's view, people under the ideal state of communism would be motivated by the principle from each according to his ability, to each according to his enterprise.
a. True
b. False
Indicate whether the statement is true or false

QUESTION 3

An economy that is operating below its full-employment capacity is experiencing a(n):
a. tax-induced recession.
b. recessionary gap.
c. fiscal drag.
d. market correction.
e. inflationary gap.

QUESTION 4

In the United States, currency in circulation is the largest component of the M1 money supply.
a. True
b. False
Indicate whether the statement is true or false

QUESTION 5

Karl Marx's massive work, titled Das Kapital, was published in 1848.
a. True
b. False
Indicate whether the statement is true or false

QUESTION 6

Within the framework of the aggregate expenditures model, what will happen if an economy is operating at a real GDP greater than full-employment real GDP?
a. An inflationary gap exists.
b. Real GDP will fall.
c. The inventories of firms will rise.
d. Firms will cut back on their current rate of output.

QUESTION 7

M1 is actually a smaller amount than M2.
a. True
b. False
Indicate whether the statement is true or false

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Unused lines of credit on credit cards are part of M2.

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