Many banks offer accounts featuring “Automatic Transfer from Savings” allowing customers to overdraw checking accounts and the bank will transfer enough funds to cover the check automatically. Most likely, what is the effect of this feature on velocity?
A. Velocity will decrease.
B. Velocity will increase.
C. Velocity will remain constant.
D. Velocity is unrelated to saving accounts.
Answer: B
You might also like to view...
The ability-to-pay philosophy of taxation argues for a progressive form of taxation
a. True b. False Indicate whether the statement is true or false
The chained consumer price index
a. assumes that households purchase the same bundle of goods and services over a lengthy time period. b. adjusts the quantities of the typical bundle purchased each month to reflect the substitution away from goods that have become more expensive. c. reflects changes in the prices of all final goods and services produced domestically by the citizens of a nation during a period. d. will generally result in a higher measured rate of inflation than the regular consumer price index.
A decrease in aggregate demand tends to cause a ____ a short run Phillips curve at first, then cause a ____ in the short run Phillips curve as people adjust their expectations. a. Movement up along; upward shift
b. Movement up along; downward shift. c. Movement down along; upward shift. d. Movement down along; downward shift.
Which of the following is a necessary condition for a budget surplus in an economy? a. Public saving must be positive
b. Net taxes must be positive. c. National saving should be positive. d. Household saving must be positive.