As individuals hold more of their financial assets in the form of money market accounts and mutual funds, the velocity of money will decrease
a. True
b. False
Indicate whether the statement is true or false
False
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The difference between a bank's assets and liabilities is referred to as:
A) retained earnings. B) gross profits. C) stockholders' equity. D) net profits.
If the economy is not fully using its inputs, pumping money into the economy will put ________ pressure on interest rates and will tend to ________ output
A) upward; increase B) upward; decrease C) downward; increase D) downward; decrease
The quantity of ________ by households will be less ________
A) saving; the higher is disposable income B) saving; the lower is the real interest rate C) consumption; the lower is the inflation rate D) consumption; the higher is disposable income
Some economists suggest the optimal way for a nation to protect its access to a strategic mineral is with
A) an infant industry tariff. B) a high rate of effective protection to keep local mines in business. C) a quota on imports of the mineral. D) a low nominal rate of protection. E) a stockpile.