When you take $500 from your saving account and deposit it in your checking account, M1 increases.
Answer the following statement true (T) or false (F)
True
You might also like to view...
Interest rates in the United States rise relative to interest rates in other countries. As a result, in the foreign exchange market
A) the supply curve of dollars shifts leftward. B) the supply curve of dollars shifts rightward. C) the demand curve for dollars shifts leftward. D) there is an upward movement along the supply curve of dollars.
In "real business cycle" theory, as opposed to "traditional business cycle" theory, the govern- ment is viewed as an instrument to correct unevenness in economic growth caused by cycles
Indicate whether the statement is true or false
The clearest sign of inflation would be a(n)
a. increase in the price level. b. increase in the quantity of total final output. c. decrease in the quantity of total final output. d. simultaneous increase in both output and prices.
Which of the following would we not expect if government policy moved the economy up along a given short-run Phillips curve?
a. Teresa reads in the newspaper that the central bank recently raised the money supply. b. Jackie gets fewer job offers. c. Miguel makes larger increases in the prices at his health food store. d. Julie's nominal wage increase is larger.