Which of the following would lead to a change in the money measure, M1?
A) a customer purchases music downloads with a debit card
B) a customer withdraws funds from her checking account to purchase a 6-month time deposit
C) depositing a paycheck drawn against Bank of America into your checking account in Wells Fargo Bank
D) interest payments by the Treasury on its debt
Ans: B) a customer withdraws funds from her checking account to purchase a 6-month time deposit
You might also like to view...
The biggest barrier to growth for many of the poorest countries in the world is the need for:
A. more physical capital. B. larger populations. C. more human capital. D. improved legal and political frameworks.
The monopolist faces the market demand curve
a. True b. False Indicate whether the statement is true or false
If you divide the amount of nominal GDP by the stock of money, you have computed the
a. multiplier. b. price level. c. velocity of circulation. d. inflation rate.
If expected inflation is constant, then when the nominal interest rate falls, the real interest rate
a. falls by more than the change in the nominal interest rate. b. falls by the change in the nominal interest rate. c. rises by the change in the nominal interest rate. d. rises by more than the change in the nominal interest rate.