M1 money includes all but which one of the following?
a. Savings accounts
b. Paper money
c. Coins
d. Checkable deposits
a
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As firms expect future profits to increase, they increase their investment. As a result, real GDP rises above potential GDP. If the Fed followed Friedman's k-percent rule, the Fed would
A) continue allowing the quantity of money to grow at "k" percent. B) increase the quantity of money more than usual. C) decrease the quantity of money. D) raise the federal funds rate. E) lower the federal funds rate.
The MP curve may be used to represent ________
A) movements of the real interest rate as a direct policy action of the Federal Reserve B) movements of the real interest rate that are independent of direct Federal Reserve action C) how the real interest rate is related to the inflation rate D) all of the above E) none of the above
If M = quantity of money, V = velocity of money, P = price level, and Q = the quantity of output, then the equation of exchange will be defined as:
a. MV = PQ b. MQ = PV c. MP = VQ d. MV = P/Q e. MQ = V/P
International trade constantly increased throughout the twentieth century
a. True b. False Indicate whether the statement is true or false