If David buys a movie from Target, then his purchase is recorded between the

household and the factor market.

household and the financial market.

household and the product market.

household and the business.

household and the government.

With a reserve requirement of 20% and required reserves of $25,000, a bank has a total of

$5,000 in checkable deposits.

$25,000 in demand deposits.

$50,000 in checkable deposits.

$100,000 in demand deposits.

$125,000 in checkable deposits.

The demand for loanable funds will increase if

low interest rates attract foreign investors.

investors sell stocks and increase their money holdings.

a personal income tax cut increases household saving.

net exports increases.

the government cuts expenditures.

40.

In Drewland, the money supply equals $1,000, real GDP equals $2,000 and the price level is 1.5 then the velocity of money is

1.

2.

3.

4.

5.