MACROECONOMICS FOR TODAY
MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Chapter 16, Problem 16SQ
To determine

The money kept for transaction purposes.

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a. tax increase b. economic growth c. expected inflation d. income increase e. currency appreciation f. technology breakthrough   Which ones of the above economic factors will increase money supply? Which ones of the above economic factors will increase demand for money ?
Which of the following would indicate that the dollar amount being analyzed is money?   a. M1 money stock of $1.4 trillion at the end of 2010   b. The first quarter of 2002   c. Microsoft profits of $500 billion in 2010   d. Nominal GDP in 2010 of $14.7 trillion
13. When the government uses its overdraft facilities at the central bank, it ___________ the quantity of moneyin the economy. This is called ___________________ financing. A Increases; deflationaryB Decreases; inflationaryC Decreases; deflationaryD Increases; inflationary
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