Joan has the following assets and liabilities:Credit card balance$1,000Cash$200Government bonds$3,000Stock$4,000Checking$1,500Car loan balance$10,000Car$15,000 Which of the following actions would decrease Joan's money demand by $200?
A. Joan writes a $200 check for cash and holds the cash.
B. Joan gets a $200 cash advance on her credit card and puts the proceeds in her checking account.
C. Joan sells $200 worth of stocks and puts the proceeds in her checking account.
D. Joan writes a check for $200 to purchase additional shares of stock.
Answer: D
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A) goods only. B) services only. C) goods and services only. D) goods and services excluding government purchases.
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The Federal Reserve has been quite consistently successful in keeping the inflation rate low over its entire history
a. True b. False