c. currency plus checking account balances plus traveler's checks.
d. currency plus checking account balances plus traveler's checks plus savings account balances.
Question: The M1 Measure Of The Money Supply Equals Paper Money Plus Coins In Circulation. Currency Plus Checking Account Balances. Currency Plus Checking Account Balances Plus Traveler's Checks. Currency Plus Checking Account Balances Plus Traveler's Checks Plus Savings Account Balances. If A Person Withdraws Exist500 From His/her Savings Account And Puts It ...
21. M1 includes currency(both paper and coin),checking accounts,traveler's checks(of non-bank issuers),demand deposits,other checkable deposits and negotiable order of withdrawl accounts(NOW). M1 doesview the full answer
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The M1 measure of the money supply equals paper money plus coins in circulation. currency plus checking account balances. currency plus checking account balances plus traveler's checks. currency plus checking account balances plus traveler's checks plus savings account balances.
Higher capital utilization rates may raise the user costs of capital because higher utilization rates imply
operating at inconvenient times.
paying overtime to employees operating the machines.
operating when complementary services like transporters are unavailable or more expensive.
All of the above.
Question 3
If the rental price of capital increase, the capital utilization rate
increases.
decreases.
remains the same.
depends on whether the substitution rate is greater than the income effect
Question 4
The vacancy rate in the labor market is
the number of job openings divided by the number of unemployed people in the labor force.
the number of job openings divided by the number of workers in the labor force.
the ratio of open jobs to filled jobs.
the ratio of open jobs to the total number of jobs that employers want occupied.
Question 5
Unemployment can exist in a market clearing model if it takes some search time for workers to find jobs.
True
False
Question 6
A decrease in workersâ effective real incomes while they are unemployed will
lower the job finding rate and raise the expected duration of unemployment.
lower the job finding rate and the expected duration of unemployment.
raise the job finding rate and lower the expected duration of unemployment.
raise the job finding rate and the expected duration of unemployment.
Question 7
In the Barro model, the natural rate of unemployment is
positively related to the job separations rate.
zero.
fixed.
positively related to the job finding rate.
Question 8
If the interest rate increases, the real demand for money also increases
True
False
Question 9
Commodity money is money that has value because
of the intrinsic value of the commodity.
it is legal tender.
the government says so.
All of the above.
Question 10
High-powered money is
money held by business for investment.
total currency in circulation plus depository institution deposits at the Fed.
total currency in circulation.
government bonds held by the public and depository institutions.
Question 11
U.S. M1 money includes
currency held by the public.
checkable deposits.
travelerâs checks.
All of the above.
Question 12
U.S. M2 money includes
currency, time deposits, and government bonds.
savings deposits, small time deposits, and private bonds.
checkable deposits, savings deposits, and small time deposits.
retail money market mutual funds, small time deposits, and government bonds.
Question
Money is different from other assets like capital and bonds in that
money does not pay interest.
money has intrinsic value.
money is a better long term store of value.
All of the above.
Question
If a personâs income doubles, we expect their cash holdings to
double
more than double.
less than double.
decrease.
Question 15
Real money demand does not change when
nominal GDP changes.
the interest rate changes.
the price level changes.
All of the above.
Question 16
All else constant, the price level rises when the supply of money increases.
True
False
Question 17
If the nominal interest rate were to increase, then
money demand decreases and the price level increases.
money demand increases and the price level decreases.
the money supply and the price level would increase.
the money supply and the price level would decrease.
Question 18
Real money demand is a function of real GDP and the nominal interest rate.
True
False
Question 19
The real return on money is zero.
True
False
Question 20
If the expected inflation rate is 5% and the unexpected inflation rate is 4%, the actual inflation is
1%
9%
-1%
1.25%
Question 21
When the rate of growth of money is constant
the inflation rate equals the growth rate of money.
the nominal interest rate rises.
real money balances are declining.
All of the above.
Question 22
A decrease in the money growth rate in the market clearing model causes
a decrease in the nominal interest rate.
an increase in money demand.
a decrease in the price level.
All of the above.
Question 23
A decrease in the money growth rate in the market clearing model causes
an increase in the nominal interest rate.
an increase in money demand.
an increase in the price level.
All of the above.
Question 24
Under price level targeting the money supply becomes
neutral
endogenous
exogenous
predetermined
Q 25 During a recession, the interest rate falls tending to cause money demand to rise, but is at least partly offset by real GDP falling tending to cause money demand to fall.
