The ________ often workers get paid, other things constant, the lower their average money balances, so the ________ active the money supply and the greater its velocity
a. less; less
b. more; less
c. less; more
d. more; more
d
You might also like to view...
Refer to the table above. Which country is likely to have the highest percentage of children between 7 and 14 who are working?
A) Country A B) Country B C) Country C D) Country D
A private good is non-excludable and rival in consumption
a. True b. False Indicate whether the statement is true or false
The reserve ratio is 20 percent and all loan proceeds are deposited in transactions accounts. A bond dealer has $100 million in deposits, $8 million in vault cash, and $7 million in deposits at the Fed. The Fed sells $1 million in securities to the bond dealer, who subsequently deposits the $1 million into a bank. As a result of this transaction alone
A. the money supply rises by $1 million, total reserves fall by $800,000. B. the money supply rises by $1 million, but reserves do not change. C. the money supply falls by $1 million and total reserves fall by $1 million. D. the money supply falls by $1 million and total reserves rise by $1 million.
If the consumption schedule is a straight line, it can be concluded that the:
A. APC is necessarily constant B. MPC is zero C. MPC is constant at various levels of income D. APC is equal to the MPC