When we examine the U.S. money supply, the smallest component of M1 is
A) currency and coins.
B) transaction deposits.
C) certificates of deposit.
D) traveler's checks.
D
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The demand curve and marginal revenue curve for red rubber balls are given as follows:
Q = 16 - P MR = 16 - 2Q What level of output maximizes profit? A) 0 B) 4 C) 5.5 D) 6 E) B, C and D all maximize profit.
An increase in growth rates will cause: a. an inward shift of an economy's production possibilities curve
b. an outward shift of an economy's production possibilities curve. c. a movement from a point on an economy's production possibilities curve to a point inside the curve. d. an economy's production possibilities curve to slope upward.
We could try to use a powerful computer to construct a macroeconomic model including tens of thousands of demand and supply curves, for every market in the economy. This would not be a useful undertaking because
a. it would not be worth the increased level of complication and effort needed to collect all information b. the model would be simplistic c. the model would inevitably leave out important information d. the suggested prices would inevitably be wrong in each market e. the model would not be realistic
The spread (difference) between the yield on conventional bonds and the yield on indexed bonds with the same maturities is an indication of the expected inflation rate
Indicate whether the statement is true or false