According to the quantity theory of money, an increase in the money supply causes the price level to _____ and the value of money to _____
Fill in the blank(s) with correct word
increase, fall
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The essential difference between paper money and coins as forms of money is that
A) paper money serves as a unit of account while coins do not. B) the metallic content of coins makes them more acceptable as money. C) paper is paper and not metal. The metal is more durable. D) paper money issued by the Federal Reserve Board is backed by gold while coins are not.
Other things constant, countries with higher investment rates will
A) have lower standards of living. B) tend to have higher incomes in the future. C) have to use central government planning to allocate investment. D) have to impose high taxes in order to finance the investment.
Permanent members of the Federal Open Market Committee include
a. all members of the Board of Governors. b. the president of the New York Federal Reserve Bank. c. the secretary of the U.S. Treasury. d. both the president of the New York Federal Reserve Bank and all members of the Board of Governors.
Jessica paid $2,300 for a bond with a face value of $2,000. She will be paid $300 annually as long as she holds on to the bond, until the bond's maturity date. The coupon rate of the bond is
A) 15.0 percent. B) 7.5 percent. C) 13.0 percent. D) 80.0 percent.