Assuming no other changes, if checkable deposits increase by $40 billion and currency in circulation decreases by $40 billion, the:
A. M1 money supply will decline.
B. M1 money supply will not change.
C. M2 money supply will decline.
D. M2 money supply will increase.
B. M1 money supply will not change.
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A restaurant sells a large soft drink at a fixed price of $1.79. A term used by economists to describe the money received from the sale of an additional large soft drink is
A) pure profit. B) marginal revenue. C) gross earnings. D) net benefit.
In July 2010, what was the total value of U.S. currency in circulation?
A) $500 million B) $150 billion C) $1080 billion D) $6 trillion
The majority of the elderly can live comfortably on the assets they have accumulated
Indicate whether the statement is true or false
Most economists believe the principle of monetary neutrality is
a. relevant to both the short and long run. b. irrelevant to both the short and long run. c. mostly relevant to the short run. d. mostly relevant to the long run.