Michelle transfers $4,000 from her savings account to her checking account. What effect is this change likely to have on M1 and M2?
A. M1 decreases and M2 increases
B. M1 increases and M2 decreases
C. M1 increases and M2 stays the same
D. M2 increases and M1 stays the same
C. M1 increases and M2 stays the same
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When the Federal Reserve sells government bonds to the public, it:
a. increases the M1 money supply and increases the reserves of the commercial banking system. b. increases the M1 money supply, while reducing the reserves of the commercial banking system. c. reduces the M1 money supply, while increasing the reserves of the commercial banking system. d. reduces the M1 money supply and decreases the reserves of the commercial banking system.
The accompanying figure shows a single consumer's demand for ice cream at the student union.
The student union sells a total of 7,200 scoops of ice cream each week at a price of $2.00 per scoop. If every student who buys ice cream has the demand curve shown above, then there must be ________ students purchasing ice cream each week.
A. 1,500 B. 800 C. 1,200 D. 2,000
Monetary policy is defined as:
A. The actions Congress takes to manage tax policy and interest rates B. The actions Congress takes to manage the money supply and interest rates C. The actions the federal reserve takes to manage the money supply and interest rates
On average, over the last 50 years or so world trade has
a) increased faster than world output b) been primarily concentrated in agriculture c) been dominated by Middle East oil exports d) declined as nations closed their borders to imports e) been conducted almost exclusively over the internet