Suppose Oscar withdraws $100 from his checking account and deposits it into his savings account. This transaction causes M1 to
A. Remain the same and M2 to increase by $100.
B. Increase by $100 and M2 to remain the same.
C. Decrease by $100 and M2 to remain the same.
D. Decrease by $100 and M2 to increase by $100.
Answer: C
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The money growth rate and the inflation rate
A) are negatively correlated. B) are positively correlated, but the relationship is noisy. C) are positively correlated, and the relationship is tight. D) are uncorrelated.
Americans who supported William Jennings Bryan and the "Free Silver" movement:
a. were in support of the gold standard. b. included the US Secretary of the Treasury. c. wanted to increase the U.S. price level. d. wanted free railroad transport of silver from western mines to the east.
Sweden's currency would tend to depreciate if:
a. Sweden's inflation rate rises relative to inflation in the rest of the world. b. the demand for imports by Swedes increases c. real interest rates in Sweden decrease relative to the rest of the world. d. all of the above
Based upon a Keynesian viewpoint, to stimulate the economy the government should do all of the following except
A. Make more money available. B. Buy more output. C. Employ more people. D. Raise taxes.