"Since checking accounts now pay interest they should not be included in the money supply." Given that checks are the major medium of exchange, this statement is false because
A) checking accounts are primarily used for savings in the current year.
B) the interest rate on checking accounts is lower than on other accounts.
C) the demand for real balances is negatively related to interest rates.
D) money is money.
B
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Supply-side economics argues that changes in ________ affect incentives to work.
A. marginal cost B. marginal income C. marginal profit D. marginal tax rates
If the U.S. interest rate differential falls, then the exchange rate
A) does not change. B) definitely falls. C) definitely rises. D) falls only if it was the U.S. interest rate that changed. E) rises only if it was the foreign interest rate that changed.
How can increases in a country's total income improve health?
What will be an ideal response?
Unanticipated inflation benefits
A) people or businesses who owe funds. B) people or businesses who lend funds. C) people who live on a fixed income. D) people with CDs (certificates of deposits) in the bank.