Are checks money?
What will be an ideal response?
Checks are instructions to transfer funds from one person's checking account to another person's checking account. Checks are not money, but the checking account deposits that the check transfers are money.
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Inflation rates during the years 1979-1981 were the highest the United States has ever experienced during peacetime
Indicate whether the statement is true or false
Explain the effect of price elasticities of supply and demand on tax incidence
What will be an ideal response?
Consider an economy that has the following monetary data. The monetary base and the money supply are expected to grow at a constant rate of 20% per year. Inflation and expected inflation are 20% per year
Suppose that bank reserves and currency pay no interest, all currency is held by the public, and bank deposits pay no interest. What is the nominal value of seignorage over the year? A) $10 B) $60 C) $70 D) $200
The effect of a government subsidy in a market where a positive externality is present is:
A. to increase surplus. B. to increase efficiency. C. to make consumers internalize the external benefit. D. All of these statements are true.