M2 money includes all but which one of the following?
a. Checkable deposits.
b. Savings accounts.
c. Large denomination time deposits.
d. Money market deposit accounts.
e. Money market mutual accounts.
QUESTION 2Which of the following is not an idea advocated by Adam Smith?
a. Businesspersons conspiring to fix prices are a threat to the price system.
b. Pursuit of private self interest with an invisible hand is the best way to promote the public interest.
c. Government should control the economy.
d. The government should provide for national defense and little else.
QUESTION 3If the marginal propensity to consume (MPC) is 0.75, a 50 decrease in government spending, other things being equal, would cause equilibrium real GDP to:
a. increase by 50.
b. decrease by 50.
c. increase by 200.
d. decrease by 200.
QUESTION 4The money supply known as M2:
a. includes large denomination time deposits.
b. excludes interest-earning checking accounts in savings and loans.
c. does not include money market mutual accounts.
d. includes savings accounts and small denomination time deposits.
e. includes large denomination repurchase agreements.
QUESTION 5What famous economist said that the market economy seemed to be controlled by an invisible hand?
a. Alfred Marshall. b. Adam Smith.
c. Karl Marx. d. Robert L. Heilbroner.
QUESTION 6If the marginal propensity to consume (MPC) is 0.90, a 100 increase in investment spending, other things being equal, will cause an increase in equilibrium real GDP of:
a. 90.
b. 100.
c. 900.
d. 1,000.
QUESTION 7Which of the following is considered part of M2?
a. Savings deposits.
b. Money market mutual fund shares.
c. Small time deposits of less than 100,000.
d. All of these.
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