The M1 definition of the money supply includes:
a. currency in circulation and checkable deposits.
b. Federal Reserve Notes, gold certificates, and checkable deposits.
c. Federal Reserve Notes and bank loans.
d. None of these.
a
You might also like to view...
Consider an Edgeworth Box economy with two individuals and two goods and suppose that the tastes of both individuals are quasilinear in good 1. a. Suppose initially that individual 1 has relatively little endowment of both good but the competitive equilibrium allocation has him consuming some of each. Illustrate such a competitive equilibrium. b. Now suppose the government is able to redistribute the endowment in this economy (prior to any trade occurring). In order to achieve a more equitable outcome, the government redistributes some of good 1 from individual 2 to individual 1. Show such a redistribution in your Edgeworth Box. c. Assume that both individuals continue to consume at an interior solution in the new equilibrium. How will the two individuals' consumption of good 1 change
from what it would have been without the redistribution? d. Would your answer to (c) differ in any way if the government had instead redistributed good 2 from individual 2 to individual 1? e. How would a sufficiently large redistribution alter your answer? What will be an ideal response?
In general, educating workers:
A. does not make them more productive. B. increases overall economic growth. C. contributes little to other capabilities. D. forces them to leave their native country.
The larger the simple deposit multiplier,
A) the higher the required reserve ratio. B) the higher the discount rate. C) the larger the change in the money supply for a given change in deposits. D) the less likely the Fed will be to use its monetary policy tools.
Between 1870 and 1913, labor migration from the "Old World" (Europe) to the "New World" (the United States, Canada, and Australia):
a. decreased the rate of growth of real wages in the New World and increased the rate of growth of real wages in the Old World. b. increased the rate of growth of real wages in the New World and decreased the rate of growth of real wages in the Old World. c. decreased the rate of growth of real wages in both the New and Old Worlds. d. increased the rate of growth of real wages in both the New and Old Worlds.