If you hold $25 in cash, have $150 in a checking account, and have $250 in a savings account, how much of M2 do you have?
What will be an ideal response?
All of the assets mentioned are included in M2, so you have $25 + $150 + $250 = $425 of M2.
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Which of the following is NOT a reason why a monopoly might be regulated?
A. To reduce the inefficiency associated with profits B. To limit prices in important markets with economic or political consequences C. To deal with the negative consequences of government-created monopolies D. To ensure that a good is produced at least cost
This factor contributes to the winner's curse
a. your estimate of the value of the object was not the most optimistic b. your bid was not the highest c. there were not many other bidders you had to beat out d. you shaded your bid a lot
The quantity theory of money asserts that an increase in the quantity of money
A) will decrease the price level by an offsetting amount. B) by n percent will lead to an increase in the price level by n + 1 percent. C) will lead to an equal percentage increase in real GDP. D) will lead to an equal percentage increase in the price level.
The "fooling" model was developed by economist
A) Milton Friedman. B) Edward Prescott. C) Robert Lucas, Jr. D) John Maynard Keynes. E) Charles Bogle.