New Econ
Your father earned $34,000 per year in 1984. To the nearest dollar, what is that equivalent to in 2014 if the CPI in 2014 is 215 and the CPI in 1984 is 104? A. $70,288 B. $16,447 C. $73,100 D. $34,000
$70,288
Your father earned $34,000 per year in 1984. To the nearest dollar, what is that equivalent to in 2014 if the CPI in 2014 is 215 and the CPI in 1984 is 104? A. $73,100 B. $70,288 C. $34,000 D. $16,447
$70,288
Y = $12 trillion C = $9 trillion I = $1 trillion TR = 1 trillion T = $3 trillion Use the data to calculate the following. (Enter your responses as integers.) a. Private saving: b. Public saving: c. Government purchases: d. The government budget balance is $ __trillion and as a result the government budget is in ____ .
1, 0, 2, 0, balance
Consider the simple economy that produces only three products. Use the information in the following table to calculate the (annual rate of) inflation LOADING... for 2016 as measured by the consumer price index LOADING... (CPI). BASE YEAR (1999) 2015 2016 Product Quantity Price Price Price Haircuts 5 $10.00 $11.00 $16.20 Hamburgers 13 2.00 2.45 2.40 Blu-rays 6 15.00 15.00 14.00 The inflation rate for 2016 as measured by the consumer price index (CPI) is
10.83%
The United States is divided into ___ Federal Reserve Districts. The Federal Reserve Bank's Board of Governors consists of ___ members appointed by the president of the U.S. to 14-year, non-renewable terms. One of the board members is appointed to a ___ year, renewable term as the chairman.
12, 7, 4
Suppose you deposit 2,400 cash into your checking account. By how much will checking deposits in the banking system increase as a result when the required reserve ratio is 0.20? The change in checking deposits is equal to:
12000
If real GDP equals $11,567 billion in 2006 and $11,916 billion in 2007, and assuming population is constant over those two years, how many years will it take for real GDP per capita to double?
23.4
Population =276 million Labor force = 120 million The number of people employed = 113.4 million The number of people unemployed = 6.6 million Given the information above, the unemployment rate is
5.5%
If the required reserve ratio is 0.20, the maximum increase in checking account deposits that will result from an increase in bank reserves of 10,000 is
50,000
Suppose an economy is given by: Population = 207 million Working-age population = 140 million Labor force = 89 million The number of people employed=83 million The number of people unemployed = 66 million The labor force participation rate for this economy is
63.6%
In a fractional reserve banking system, what is the difference between a "bank run" and a "bank panic?" A. A bank run involves one bank; a bank panic involves many banks. B. A bank run involves many banks; a bank panic involves one bank. C. A bank run is a local issue; a bank panic is a national issue. D. A bank run is a U.S. issue; a bank panic is an international issue.
A bank run involves one bank; a bank panic involves many banks.
Which of the following is NOT a function of money? A. Store of value B. Acceptability C. Unit of account D. Medium of exchange
Acceptability
Which of the following is a monetary policy ... tool used by the Federal Reserve Bank? A. Decreasing the rate at which banks can borrow money from the Federal Reserve. B. Buying $500 million worth of government securities, such as Treasury bills. C. Increasing the reserve requirement from 10 percent to 12.5 percent. D. All of the above.
All of the above.
Which of the following is true with respect to hyperinflation? A. It is caused by central banks increasing the money supply at a rate much greater than the growth rate of real GDP. B. It can be hundredslong dash—even thousandslong dash—of percentage points per year. C. In the presence of hyperinflation, firms and households avoid holding money. D. All of the above.
All of the above.
Potential GDP A. measures the maximum that a firm is capable of producing. B. increases over time as technological change occurs. C. increases over time as the labor force grows. D. All of the above. E. B and C only.
B and C only.
Suppose the fixed interest rate on a loan is 5.75% and the rate of inflation is expected to be 4.25%. The real interest rate is 1.5%. Suppose now that instead of 4.25%, the inflation rate unexpectedly reaches 5.5%. Who gains and who loses from this unanticipated inflation? (Mark all that apply.) A. Borrowers gain from a lower real interest rate. B. Lenders gain from a lower real interest rate. C. Lenders lose from a lower real interest rate. D. Borrowers lose from a lower real interest rate.
Borrowers gain from a lower real interest rate. Lenders lose from a lower real interest rate.
Which of the following is not a policy tool the Federal Reserve uses to manage the money supply? A. Discount policy. B. Reserve requirements. C. Open market operations. D. Changing Income tax rates.
Changing Income tax rates.
What is the general relationship between the business cycle and unemployment and inflation? A. During a recession, unemployment and inflation decrease. B. During an expansion, unemployment and inflation increase. C. During an expansion, unemployment falls and inflation increases. D. During a recession, unemployment and inflation increase.
During an expansion, unemployment falls and inflation increases.
According to Costco's CEO, Jim Sinegal: "Paying good wages and keeping your people working for you is good business...Imagine that you have 120,000 loyal ambassadors out there who are constantly saying good things about Costco. It has to be a significant advantage for you." Sources: Alan B. Goldberg and Bill Ritter, "Costco CEO Finds Pro-Worker Means Profitability," ABCnews.com, Aug. 2, 2006; Lori Montgomery, "Maverick CEO Joins Push to Increase Minimum Wage," Washington Post, Jan. 30, 2007. What is Costco's CEO referring to? A. Marketing strategies B. Structural unemployment C. Efficiency wages D. Union contracts
Efficiency wages
Evaluate the following statement: Banks use deposits to make consumer loans to households and commercial loans to businesses. Banks will loan out every penny of their deposits in order to make a profit. A. True. Any money that is left over after a bank loans money to businesses and households will be loaned to other banks. B. False. Banks must hold a fraction of their deposits as vault cash or with the Federal Reserve. C. True. Deposits that sit in a bank as vault cash earn no interest. D. False. In reality, banks are rarely able to find borrowers for all of their deposits.
False. Banks must hold a fraction of their deposits as vault cash or with the Federal Reserve.
Which of the following best explains the difference between commodity money and fiat money? A. Fiat money has no value except as money, whereas commodity money has value independent of its use as money. B. Commodity money is usually authorized by the central bank, whereas fiat money has to be exchanged for gold by the central bank. C. All money is commodity money, as it has to be exchanged for gold by the central bank. D. Commodity money has no value except as money, whereas fiat money has value independent of its use as money.
Fiat money has no value except as money, whereas commodity money has value independent of its use as money.
What is the "shadow banking system"? A. Financial firms that raise money from investors and provide it to borrowers. B. Banks that are outside of the Federal Reserve System and thus not subject to regulation. C. Commercial banks making subprime loans to homebuyers. D. Illegal borrowing and lending through the underground economy. The financial firms of the shadow banking system were A. less vulnerable than commercial banks to bank runs because they were less leveraged than commercial banks. B. more vulnerable than commercial banks to bank runs because they were more highly leveraged than commercial banks. C. less vulnerable than commercial banks to bank runs because they were selling risky investments such as mortgage backed securities. D. less vulnerable than commercial banks to bank runs because they were not controlled by the Federal Reserve.
Financial firms that raise money from investors and provide it to borrowers. more vulnerable than commercial banks to bank runs because they were more highly leveraged than commercial banks.
Suppose John Q. Worker is currently unemployed. Each day, John Q. Worker spends the entire day searching available job openings for an appropriate position given his set of skills, abilities, and interests. If someone asks John Q. what he does for work, he tells them that he is currently "in-between jobs." Which of the following best classifies John Q.'s unemployment status? A. Structurally unemployed B. Frictionally unemployed C. Cyclically unemployed D. Seasonally unemployed
Frictionally unemployed
Which one of the following is not a measure of the price level? A. Producer Price Index: an average of prices received by firms for goods and services at all stages of production. B. Consumer Price Index: an average of the prices of goods and services a typical family of four would purchase. C. Government Price Index: an average of the prices paid by the government for goods and services used only by different government agencies. D. GDP Deflator: broadest measure of the average price level as it includes prices of every final good and service.
Government Price Index: an average of the prices paid by the government for goods and services used only by different government agencies.
Which of the following does NOT lead to long-run economic growth LOADING...? A. Increase in the capital stock B. Technological change C. Increase in average wages D. Improved labor productivity
Increase in average wages
If Irving Fisher was correct in his prediction about the value of velocity, then the quantity equation can be written to solve for the inflation rate as follows: A. Inflation rate = Growth rate of the money supply dash- Growth rate of velocity. B. Inflation rate = Growth rate of the money supply + Growth rate of real output. C. Inflation rate = Growth rate of the money supply + Growth rate of velocity. D. Inflation rate = Growth rate of the money supply dash- Growth rate of real output.
Inflation rate = Growth rate of the money supply dash- Growth rate of real output.
The BLS uses the establishment survey LOADING... to collect information on employment in the economy. Indicate one drawback of the establishment survey compared to the current population survey and indicate one advantage. A. It does not include information about self-employed people. B. It is based on company payroll and not on unverifiable answers. Your answer is correct. C. It includes complete information about unemployment. D. It is based on unverifiable, self-reported survey responses.
It does not include information about self-employed people. It is based on company payroll and not on unverifiable answers.
What are the largest asset and the largest liability of a typical bank? A. Reserves are the largest asset and deposits are the largest liability of a typical bank. B. Cash in its vault is the largest asset and bonds are the largest liability of a typical bank. C. Loans are the largest asset and deposits are the largest liability of a typical bank. D. Loans are the largest liability and deposits are the largest asset of a typical bank.
Loans are the largest asset and deposits are the largest liability of a typical bank.
The Federal Reserve uses two definitions of the money supply, M1 and M2, because A. M2 is a narrow definition focusing more on liquidity, whereas M1 is a broader definition of the money supply. B. M2 satisfies the medium of exchange function of money, whereas M1 satisfies the store of value function. C. M2 is also known as cash and cash equivalent, whereas M1 represents the standard of deferred payment function. D. M1 is a narrow definition focusing more on liquidity, whereas M2 is a broader definition of the money supply.
M1 is a narrow definition focusing more on liquidity, whereas M2 is a broader definition of the money supply.
Suppose you withdraw $1,000 from a money market mutual fund and deposit the funds in your bank checking account. How will this action affect M1 and M2? A. M2 will not be affected, but M1 will increase. B. M2 will decrease and M1 will increase. C. M2 will increase and M1 will decrease. D. M2 will increase, but M1 will not be affected.
M2 will not be affected, but M1 will increase.
Which one of the following accurately describes the relationship between frictional unemployment and job search? A. People are said to be frictionally unemployed when they are between jobs due to the seasonal variations. B. People are said to be frictionally unemployed when they are laid off because of a recession. C. People are said to be frictionally unemployed when they are between jobs and searching for new jobs. Your answer is correct. D. People are said to be frictionally unemployed when their skills do not match job requirements.
People are said to be frictionally unemployed when they are between jobs and searching for new jobs. Your answer is correct.
In a closed economy, the values for GDP, consumption spending, investment spending, transfer payments, and taxes are as follows: Y = $1111 trillion C = $88 trillion I = $22 trillion TR = $11 trillion T = $22 trillion Using the information above, what is the value of private saving and public saving? A. Private saving equals $0 trillion and public saving equals $11 trillion. B. Private saving equals $88 trillion and public saving equals $22 trillion. C. Private saving equals $22 trillion and public saving equals $0 trillion D. Private saving equals $22 trillion and public saving equals $88 trillion.
Private saving equals $22 trillion and public saving equals $00 trillion
Which of the following can give an early warning of future increases in the price level? A. Consumer price index B. GDP deflator C. Producer price index D. All of the above
Producer price index
What is the difference between the consumer price index and the producer price index? A. The producer price index is an average of the prices of the goods and services purchased by the typical urban family of four, whereas the consumer price index is an average of the prices received by producers of goods and services at all stages of the production process. B. The consumer price index is an average of the prices of the goods and services purchased by the typical urban family of four, whereas the producer price index is an average of the prices received by producers of goods and services at all stages of the production process. C. The consumer price index is an average of the prices of the goods and services purchased by any urban family, whereas the producer price index is an average of the prices received by the retail sector. D. The consumer price index is an average price level equal to nominal GDP divided by real GDP, whereas the producer price index is an average of the prices received by the wholesale producers.
The consumer price index is an average of the prices of the goods and services purchased by the typical urban family of four, whereas the producer price index is an average of the prices received by producers of goods and services at all stages of the production process.
Based on the quantity theory of money, if velocity is constant, inflation is likely to occur when: A. The money supply grows at a slower rate than real GDP. B. The money supply grows at the same rate as real GDP. C. The money supply and inflation are unrelated. D. The money supply grows at a faster rate than real GDP.
The money supply grows at a faster rate than real GDP.
According to the quantity theory of money, inflation results from which of the following? A. The money supply grows at the same rate as GDP. B. The money supply grows slower than real GDP. C. The money supply grows faster than real GDP.
The money supply grows faster than real GDP.
When the Federal Reserve buys bonds through open market operations The money supply will increase. B. The money supply will decrease. C. There is no effect on the money supply. D. Not enough information is given.
The money supply will increase.
How do unemployment insurance payments LOADING... in the United States and social insurance programs in other countries increase the unemployment rate? A. They decrease the opportunity cost of job search. B. They increase the opportunity cost of job search. C. The payments are costly and firms are forced to lay off workers. D. They are paid as long as the unemployed person remains unemployed.
They decrease the opportunity cost of job search.
How do the banks "create money"? A. When there is a decrease in checking account deposits, banks lose reserves and reduce their loans, and the money supply expands. B. When there is an increase in checking account deposits, banks gain reserves and make new loans, and the money supply expands. C. Banks buy bonds in the open market and gain reserves; this excess reserve holding increases the money supply. D. Banks sell bonds in the open market and lose reserves; the excess cash holding by households increases the money supply.
When there is an increase in checking account deposits, banks gain reserves and make new loans, and the money supply expands.
When the economy is at full employment, A. the natural rate of unemployment prevails. B. all remaining unemployment is either frictional or structural. C. the unemployment rate is greater than zero. D. All of the above.
all of the above
Which of the following causes changes in the CPI to overstate the true inflation rate? A. Increase in quality bias B. New product bias C. Substitution bias D. All of the above
all of the above
Which of the following is true with respect to Irving Fisher's quantity equation, YM×V=P×Y? A. M = M1 definition of the money supply B. V = Average number of times a dollar is spent on goods and services C. P = the GDP deflator D. V=PxY/M E. All of the above
all of the above
Which of the following contribute(s) to shorter recessions, longer expansions, and less severe fluctuations in real GDP? (Mark all that apply.) A. A service-based economy B. Monetary policy C. Unemployment insurance D. All of the above E. A and C only
all of the above
Why is the unemployment rate, as measured by the Bureau of Labor Statistics, an imperfect measure of the extent of joblessness in the economy? A. It fails to account for illegal activities. B. It does not account for inaccurate responses to the Current Population Survey. C. Underemployed people are considered employed. D. Discouraged workers are not considered unemployed. E. All of the above.
all of the above
When tax revenue exceeds government spending (government purchases and transfer payments) there is . When tax revenue equals government spending there is . When tax revenue is less than government spending there is
budget surplus, balanced budget, budget defecit
An International Monetary Fund Factsheet makes the following observation regarding sound financial systems: "A country's financial system...provide[s] a framework...[for] supporting economic growth." Source: "Financial System Soundness," International Monetary Fund Factsheet, March 2013. Do you agree with this observation? Briefly explain. A weak financial system LOADING... might make economic growth LOADING... difficult, since A. a weak financial system implies that the government does not have enough resources. B. a strong financial sector is needed for export-led economic growth. C. capital investment, essential for rapid economic growth, is often financed by borrowed funds and an unstable financial system leads to difficulty attracting loanable funds. D. a strong financial system is needed to provide employment for the country's labor force.
capital investment, essential for rapid economic growth, is often financed by borrowed funds and an unstable financial system leads to difficulty attracting loanable funds.
Workers who lose their jobs because of a recession are experiencing A. seasonal unemployment. B. frictional unemployment. C. cyclical unemployment. D. structural unemployment.
cyclical unemployment
Look carefully at the following list. a. the coins in your pocket. b. the funds in your checking account. c. funds in your savings account. d. traveler's check that you have left over from a trip. e. Citibank Platinum MasterCard. Which of the things above are NOT included in the M1 LOADING... definition of the money supply? A. b & e B. a & b C. d & e D. c & e
c & e
When an unemployed person drops out of the labor force, it A. does not affect the employment-population ratio. B. affects the employment-population ratio. C. does not affect the labor force participation rate. D. does not affect the unemployment rate.
does not affect the employment-population ratio. Your answer is correct.
The U.S. dollar can best be described as A. reserve money. B. commodity-backed money. C. fiat money. D. commodity money.
fiat money
The financial system of a country is important for long-run economic growth because A. firms that use the financial system predominantly are being reckless. B. people can increase their wealth very quickly under a healthy financial system. C. firms need the financial system to acquire funds from households. D. most firms rely on their own retained earnings and do not use the financial system.
firms need the financial system to acquire funds from households.
A person who is in between jobs but actively engaged in a job search is considered to be . Experts in hand-drawn animation who remain unemployed due to the film industry's switch to computer-generated animation are considered to be . When a company reduces production and employment during economic recessions, those employees who lose their jobs are generally considered to be
frictional unemployed, structurally unemployed, cyclically unemployed
Crowding out occurs when A. interest rates increase as firms spend a larger amount of resources on research and development. B. governments must borrow funds which causes interest rates to rise and thus private investment is reduced. C. interest rates increase because the Federal Reserve reduces that economy's money supply. D. firms borrow more to expand operations which results in an increase in interest rates.
governments must borrow funds which causes interest rates to rise and thus private investment is reduced.
Credit cards are A. included in both the M1 and the M2 definitions of the money supply. B. included in the M2 definition of the money supply, but not in the M1 definition. C. included in the M1 definition of the money supply, but not in the M2 definition. D. included in neither the M1 definition of the money supply nor in the M2 definition.
included in neither the M1 definition of the money supply nor in the M2 definition.
Evaluate the following statement: "Saving money is not lending. How can it be? When I save my money, I put it in a bank. I don't loan it out to someone else." The statement is A. correct. Depositing money in a bank is borrowing, not saving. B. incorrect. The supply of loanable funds is determined by firms' willingness to borrow. C. incorrect. The supply of loanable funds is determined by household saving. D. correct. Depositing money in a bank is neither saving nor borrowing.
incorrect. The supply of loanable funds is determined by household saving.
During the expansion phase of the business cycle, production, employment, and income During the recession phase of the business cycle, production, employment, and income
increase, decrease
What is the rule of 70? The rule of 70 A. is a mathematical formula that is used to calculate the number of years it takes real GDP per capita or any other variable to quadruple. B. is a mathematical formula that is used to calculate the number of years it takes real GDP per capita or any other variable to increase by two hundred percent. C. states when an individual can be eligible for full social security benefits. D. is a mathematical formula that is used to calculate the number of years it takes real GDP per capita or any other variable to double. If real GDP per capital grows at a rate of 6.16.1 percent per year, it will take ____ years to double.
is a mathematical formula that is used to calculate the number of years it takes real GDP per capita or any other variable to double. 11.5
he unemployment rate A. is the amount of the labor force that is not working. B. shows the percentage of the population that is considered unemployed. C. is the amount of people in the population that are not working. D. shows the percentage of the labor force that is considered unemployed.
shows the percentage of the labor force that is considered unemployed.
Inflation can affect the distribution of income because A. people with incomes rising faster than the rate of inflation enjoy an increasing purchasing power, while people with incomes rising more slowly than the rate of inflation are hurt by a decreasing purchasing power B. people with incomes rising slower than the rate of inflation enjoy an increasing purchasing power, while people with incomes rising more quickly than the rate of inflation are hurt by a decreasing purchasing power. C. people with fixed incomes, such as retired persons who may be receiving a pension of a fixed number of dollars each year, are not affected by the inflation rate, but people with varying incomes are. D. when inflation is fully anticipated, mortgage lenders face very high default risk.
people with incomes rising faster than the rate of inflation enjoy an increasing purchasing power, while people with incomes rising more slowly than the rate of inflation are hurt by a decreasing purchasing power
The employment-population ratio measures the A. percentage of the working age population that is in the labor force. B. percentage of the working age population that is employed. C. portion of the total population that is employed. D. percentage of the working age population that is not employed.
percentage of the working age population that is employed. Your answer is correct
A baseball fan with a Mike Trout baseball card wants to trade it for a Miguel Cabrera baseball card, but everyone the fan knows who has a Cabrera card doesn't want a Trout card. Economists characterize this problem as a failure of the A. market clearing mechanism. B. principle of a double coincidence of wants. C. irrational exuberance doctrine. D. theory of comparative advantage.
principle of a double coincidence of wants.
Which of the following is the best measure of the standard of living of the typical person in a country? A. real GDP B. the unemployment rate C. real GDP per person. D. the inflation rate
real GDP per person.
Suppose that Sally J. Society recently lost her job as an underwater welder. In looking for a new job, she discovers that the only available jobs are for economists and that there are no openings for underwater welders because the trade is now obsolete. If Sally J. Society decides to return to school to earn an Economics degree, what is the best classification of her unemployment status? A. Cyclically unemployed B. Seasonally unemployed C. Frictionally unemployed D. Structurally unemployed
structurally unemployed
A double coincidence of wants refers to A. the situation where two parties are involved in a transaction where money is the medium of exchange. B. the fact that for a barter trade to take place between two people, each person must want what the other one has. C. the idea that a barter economy is more efficient than an economy that uses money. D. the situation in which a good that is used as money also has value independent of its use as money.
the fact that for a barter trade to take place between two people, each person must want what the other one has.
Capital can be differentiated between physical capital and human capital. Human capital is A. the new developments in machinery and software. B. the goods manufactured to produce other goods and services. C. the energy use to bring together the factors of production to produce goods and services. D. the knowledge and skills workers acquire from education and training or from their life experiences Which of the following is the best example of human capital? A. a worker gets a college degree B. a manager buys workers more personal computers C. a manager devotes more spending to research and development D. a worker pays less taxes
the knowledge and skills workers acquire from education and training or from their life experiences. a worker gets a college degree
is the percentage of the working-age population in the labor force.
the labor force participation rate
Potential real GDP is A. the level of GDP attained when only some firms have excess capacity. B. the level of GDP attained when most firms are producing at capacity and unemployment is low. C. the level of GDP attained when all firms are producing at capacity. D. the level of GDP attained when all firms have excess capacity. Potential real GDP?
the level of GDP attained when all firms are producing at capacity. Grows over time
Suppose the reserve requirement is 15%. What is the effect on total checkable deposits in the economy if bank reserves increase by $40 billion? A. $3 billion increase B. $600 billion increase C. $40 billion increase D. $267 billion increase
$267 billion increase
The unemployment rate in the United States typically has been lower than the unemployment rates in Canada and countries in Western Europe because A. the opportunity cost of job search is lower in Canada and countries of Western Europe and unemployed workers in those countries spend less time searching for jobs. B. the opportunity cost of job search is higher in Canada and countries of Western Europe and unemployed workers in those countries search longer for jobs. C. in Canada and countries of Western Europe, workers are eligible to receive unemployment payments for less time compared to U.S.. D. the opportunity cost of job search is lower in Canada and countries of Western Europe and unemployed workers in those countries search longer for jobs.
the opportunity cost of job search is lower in Canada and countries of Western Europe and unemployed workers in those countries search longer for jobs.
Changes in the CPI overstate the true inflation rate due to four "biases." If apple prices rise rapidly during the month while orange prices fall, consumers will reduce their apple purchases and increase their orange purchases. Which of the four biases is concerned with this consumer behavior? A. the substitution bias B. the new product bias C. the outlet bias D. the increase in quality bias The BLS collects price statistics from traditional full-price retail stores, which do not reflect the prices some consumers pay by shopping at discount stores or on the Internet. This is a description of which bias? A. the outlet bias. B. the increase in quality bias C. the new product bias D. the substitution bias
the substitution bias. the outlet bias.
When an unemployed person drops out of the labor force, the unemployment rate A. understates the true degree of joblessness in the economy. B. is not affected by the existence of such workers. C. becomes more reliable as all the potential erroneous data are removed. D. overstates the true degree of joblessness in the economy.
understates the true degree of joblessness in the economy. Your answer is correct
What is the real average hourly wage in 2009? A. $8.61 B. $7.92 C. $17.42 D. $8.21 What can be said about real average hourly earnings and nominal average hourly earnings between 2008 and 2010? A. Real average hourly earnings increased and nominal average hourly earnings decreased. B. Real average hourly earnings decreased and nominal average hourly earnings increased. C. Both real and nominal average hourly earnings increased. D. Both real and nominal average hourly earnings decreased.
$8.21. Both real and nominal average hourly earnings increased.
If a 3-month Treasury bill pays 5.5% and the change in the consumer price index (CPI) is 4.7%, what is the real interest rate (the true return to lending)? A. 5.5% B. 4.7% C. 10.2% D. 0.8%
0.8%
In addition to the Federal Reserve Bank, what other economic actors influence the money supply? A. The U.S. President and Vice President. B. The U.S. Mint and the U.S. Treasury. C. Households, firms, and banks. D. The U.S. Senate and the U.S. House of Representatives.
Households, firms, and banks.
The M2 definition of the money supply includes A. savings accounts, mutual funds, small time deposits, and credit cards. B. M1, savings accounts, small time deposits, and money markets. C. M1, savings accounts, mutual funds, and credit cards. D. M1, savings accounts, small time deposits, money markets, and credit cards.
M1, savings accounts, small time deposits, and money markets.
