About 46 percent of M1 is composed of
A) demand deposits. B) money market mutual funds.
C) savings deposits. D) currency held by the public.
D
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In calculating GDP, "transfer payments" are
A) included because they are re-valuations of existing wealth. B) excluded because no goods or services were produced in exchange for them. C) included because they are payments for labor services. D) excluded because used goods already counted the year they were produced.
Central banks that have a hierarchical mandate with inflation targeting basically are saying:
A. hitting the inflation target comes first, everything else comes second. B. the inflation target is the second most important goal after economic growth, which is always the most important goal for monetary policymakers. C. hitting the inflation target is the only objective. D. hitting the inflation target is the first priority after all other stated objectives are reached.
The Fed acquired the authority to do which of the following during the economic crisis of 2008?
What will be an ideal response?
When buyers believe that rising prices will continue to rise, this can lead directly to
A. a burst. B. a bubble. C. deflation. D. bankruptcy.