1. 5. Match each concept in Column A with the best definition or example in Column B.

Column A Column B

a. Expansionary monetary policy

b. Flat money

c. Accelerator principle

d. Monetary neutrality

e. Velocity

f. Liquidity g. Commodity money h. A good property for money to have i. To maintain price stability 1. The idea that changes in the money supply affect only prices, not output 2. Residential investment 3. Standardization 4. A euro coin made of minerals worth €.10 5. The ease with which an asset can be used in trade 6. The ECB increases its main refinancing rate 7. A silver coin 8. The ECB's mandate 9. Bank deposits at the ECB j. Bank reserves k. M1 10. Currency in circulation and overnight deposits 11. The number of times that a unit of money changes hands in a year l. Very sensitive to interest rates m. Contractionary monetary policy 12. Relates investment to GDP growth 13. The ECB lowers its main refinancing rate