The monetary base is the sum of:
A. currency in the hands of the public, reserves and M1.
B. currency in the hands of the public and reserves in the banking system.
C. M1 and reserves.
D. reserves and M2.
Answer: B
You might also like to view...
As a person's wage rate increases, the substitution effect motivates an increase in work and the income effect motivates a decrease in work
Indicate whether the statement is true or false
If the MPC is 0.9, then an increase in taxes of $100 can be expected to __________ consumption by the amount of __________
A) increase; $90 B) decrease; $90 C) increase; $100 D) decrease; $100
The more elastic the demand curve, _____
a. the smaller the proportion of a tax paid by the suppliers b. the smaller the proportion of a tax paid by the demanders c. the more elastic the supply curve d. the more the tax can be shifted to demanders
Which of the following is most likely to increase the incentive to invest, produce, and employ others?
What will be an ideal response?