All else remaining equal, if the amount of checkable deposits increase, this will increase the size of:
a) only M1.
b) only M2.
c) M1 and M2.
d) neither M1 nor M2.
Ans: c) M1 and M2.
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Because decreases in inflation increase aggregate spending and short-run equilibrium output:
A. the aggregate demand curve is downward sloping. B. the aggregate demand curve is upward sloping. C. the aggregate demand curve is horizontal. D. the short-run aggregate supply line is downward sloping.
Wealth consists ultimately of
A) gold. B) land. C) money. D) whatever people value.
What function is money playing in each of these situations: a. You walk into a store in Germany and see that all the prices are in euros. b. You buy a candy bar for $1.25. c. Your Aunt Jane keeps $100 bills tucked into many books in her house
What will be an ideal response?
An increase in the MPC causes an increase in which of the following?
A) MPS B) spending multiplier C) savings rate D) exports E) aggregate supply