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20. Checkable deposits are included in: a) neither M1 nor M2 b) M2 but not in MI

ID: 1126980 • Letter: 2

Question

20. Checkable deposits are included in: a) neither M1 nor M2 b) M2 but not in MIl c) both M1 and M2 d) M1 but not in M2 21. Suppose that real GDP increases by 5 percent while the population of a country increases by 7 percent. Then per capita GDP necessarily remains unchanged thereisnot enough information to det ermine what happens to per capita GDP. per capita GDP necessarily increases per capita GDP necessarily decreases a) b) c) d) 22. The production-possibilit es curve illustrates that a) Society can always produce more of all goods simultaneously. b) Constant opportunity costs always eist. c) There areno opportunity costs in a wealthy economy. d) If society is efficient, it can produ ce more of onegood only if it reduces output of anothergood.

Explanation / Answer

Answer.)

Q20.) C.) both M1 and M2

Q21.) d.)  output per person necessarily decreases

Q22.) d.) If society is efficient, it can produce more of ane good only if it reduces output of another good.