Money supply M1 does not include the currency held by

A. households in their wallets or purses.
B. business firms.
C. state and local governments.
D. commercial banks.


Answer: D

Economics

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Which of the following trade agreements, which took effect in 1994 and was implemented over a 15-year period, eliminates all tariffs and other trade barriers between its members?

A) North American Free Trade Agreement B) Asian Pacific Economic Cooperation C) General Agreement on Tariffs and Trade D) World Trade Organization

Economics

Assume that a Chrysler automobile sells for $15,000 in the United States and that the exchange rate is $1 = €1.3 . For purchasing power parity to hold, the same car should sell in Germany for:

a. €15,000. b. €11,538. c. €19,500. d. €1,538. e. €15,500.

Economics

When the APS is negative

A. the APC is less than one. B. the APC is equal to one. C. the APC is greater than one. D. the APC may be less than one, one or greater than one.

Economics

If the exchange rate moves from 10 Mexican pesos per U.S. dollar to 8 Mexican pesos per U.S. dollar, then the Mexican peso has ________ and the U.S. dollar has ________.

A. appreciated; depreciated B. depreciated; appreciated C. appreciated; appreciated D. depreciated; depreciated

Economics