If a sizeable amount of U.S. currency is held outside of the United States,
a. the accuracy of the M2 money supply figures will be improved, but there will be no impact on M1.
b. the accuracy of the M1 money supply figures will be improved, but there will be no impact on M2.
c. the money supply figures, particularly those for M1, will be less reliable.
d. the money supply figures of the U.S. will not be affected because the funds are held outside the U.S.
C
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When a market is not in equilibrium:
A. a change in either supply or demand is required to reestablish equilibrium. B. there is neither excess supply nor excess demand. C. the economic motives of sellers and buyers will move the market to its equilibrium. D. government intervention is required to achieve equilibrium.
For a perfectly competitive syrup producer whose average total cost curve does not change, an economic profit could turn into an economic loss if the
A) market demand for syrup decreases. B) marginal cost curve shifts downward. C) market demand for syrup does not change. D) market demand for syrup increases. E) price of syrup rises.
For consumers with a binding borrowing constraint, a decrease in the real interest rate ________
A) decreases consumption now, and in the future B) increases consumption now, and in the future C) decreases consumption now, and increases future consumption D) has no impact on consumption
Proponents of the fixed exchange rate system argue that
A) flexible exchange rates may promote international trade, but under a fixed exchange rate system at least we know what the rates will be from day to day. B) under a flexible exchange rate system, there is too great a chance that the exchange rate will diverge from the equilibrium exchange rate. C) under a flexible exchange rate system, there is no way of knowing what the exchange rate is at any particular point in time. D) under a fixed exchange rate system, there would be only one currency. E) none of the above