Currency held in the vault of First National Bank is:
A. counted as part of M1.
B. counted as part of M2 but not M1.
C. only counted as part of M1 if it was deposited into a checking account.
D. not counted as part of the money supply.
D. not counted as part of the money supply.
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Which of the following is the objective of expansionary monetary policy?
a. An increase in employment. b. A decrease in employment. c. An increase in the velocity of money. d. An increase in prices proportional to the rise in the money supply.
Reduced barriers to trade help explain an increase in U.S. exports and imports relative to GDP since 1950
a. True b. False Indicate whether the statement is true or false
All other factors being constant, a reduction in price tends to cause which of the following?
A) an increase in supply and an increase in demand B) a reduction in supply and an increase in demand C) an increase in quantity supplied and a reduction in quantity demanded D) a reduction in quantity supplied and an increase in quantity demanded
The U.S. real interest rate rises relative to Japan's. As a result,
A) the yen will depreciate and the dollar will appreciate. B) the yen will appreciate and the dollar will depreciate. C) both the dollar and the yen will depreciate. D) both the dollar and the yen will appreciate.