Question
1.Velocity is another term for the money multiplier. equivalent to real GDP. equivalent to the price level. equivalent to nominal GDP. the number of times
1.Velocity is
another term for the money multiplier.
equivalent to real GDP.
equivalent to the price level.
equivalent to nominal GDP.
the number of times the average dollar is spent in a year.
2.Which of the following is not part of M1?
Checkable deposits
Savings deposits
Currency
Traveler's checks
Coins
3.Which of the following are considered among the chief functions of money?
- Serves as a medium of exchange
- Serves as a store of value
- Is highly liquid
I only.
II only.
III only.
I and II only.
I, II, and III.
Which of the following is not counted in M2?
Checkable deposits
Savings deposits
Currency and coins
Traveler's checks
Vault cash
If you need $200 to buy a new iPhone next year and interest rates are 2%, the amount of money you need to deposit into the bank this year is
$40.00.
$40.08.
$100.00.
$166.67.
$196.08.
If you save $1,200 at 6% this year, next year your money will be worth
$1,272.
$1,290.
$1,722.
$1,920.
$7,200.
Crowding out occurs when
the government is using contractionary fiscal policy.
the government is using expansionary fiscal policy.
Congress increases personal income taxes.
Congress increases business taxes.
Congress increases spending and personal income taxes by the same amount.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started