Coins in people's pockets and purses are:
A. included in M1 but not in M2.
B. included both in M1 and in M2.
C. included in M2 but not in M1.
D. excluded from M1 and M2 because people can exchange them for Federal Reserve notes.
B. included both in M1 and in M2.
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Refer to Table 15-5. Suppose the table above illustrates the values of real and potential GDP and the price level if the Fed does not vote to change their current policy to be more contractionary or expansionary
Suppose that the Fed uses an appropriate policy and is successful in keeping real GDP at potential in 2017. State whether each of the following will be higher or lower than if the Fed had taken no action: a. Real GDP b. Potential real GDP c. The price level d. The unemployment rate
Studies suggest that brand loyalty is based primarily on real differences among competing products, suggesting that persuasive advertising is an ineffective means to maintain or increase market share
Indicate whether the statement is true or false
In the simplest Keynesian model of the determination of income, interest rates are assumed
A) to be exogenous and to influence desired spending. B) to be endogenous and not to influence desired spending. C) to be endogenous and to influence desired spending. D) to be exogenous and not to influence spending.
Explain why Robin Hood's practice of stealing from the rich to give to the poor is never Pareto efficient
What will be an ideal response?