Checkable deposit account balances are
A. considered credit, but not money.
B. part of M2 but not part of M1.
C. only a small component of the money supply.
D. counted in the calculation of the money supply.
Answer: D
You might also like to view...
Nominal GDP in a given year is GDP
A) valued in the prices of the base year. B) valued in the prices of that year. C) adjusted for inflation. D) adjusted for the value of intermediate goods.
Assuming a fully loaned-up banking system and a deposit expansion multiplier of 2, a $10 million government expenditure financed by sales of securities to the banking system will cause the money supply to
A) remain unchanged. B) rise by $5 million. C) rise by $10 million. D) rise by $20 million.
Refer to the above data. Gross investment is $8 billion, net exports are $4 billion, and government collects a lump-sum tax of $30 billion and spends $30 billion. Assume all taxes are personal taxes and that government spending does not entail shifts in the consumption and investment schedules. The equilibrium GDP will be:
A. $280 billion
B. $290 billion
C. $300 billion
D. $310 billion
Countries that have experienced sustained increases in their standard of living have achieved them because of
A) higher rates of saving and investment. B) higher rates of population growth. C) sustained technological change. D) All of the above are correct.