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ch. 4 quiz

ch. 4 quiz - Score 0/6.66 10 If inflation falls from 5...

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1.   Money market mutual fund shares are included in:    Student Response Correct Answer A. M3 only    B. M2 only    C.  M2 and M3    D.  M1    Score: 6.66/6.66    2.   To increase the money supply, the Federal Reserve:    Score: 6.66/6.66    3.   The classical dichotomy:   
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  Score: 6.66/6.66    4.   People use money as a unit of account when they:    Score: 6.66/6.66    5.   Economists use the term money to refer to:    Score: 6.66/6.66 
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  6.   The income velocity of money:    Score: 6.66/6.66    7.   An important factor in the evolution of commodity money to fiat money is:    Score: 6.66/6.66    8.   All of the following are included in M2 EXCEPT: 
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  Score: 6.66/6.66    9.   Suppose that the nominal interest rate equals 9 percent, the expected inflation rate is 5 percent, and actual inflation turns out to be 3 percent. In this case, the: 
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Unformatted text preview: Score: 0/6.66 10. If inflation falls from 5 percent to 2 percent and nothing else changes, then, according to the Fisher effect: Score: 6.66/6.66 11. The quantity theory of money assumes that: Score: 6.66/6.66 12. If the nominal money supply rises by 6 percent, the price level rises by 4 percent, and output rises by 3 percent, then, according to the quantity equation, income velocity rises by: Score: 0/6.66 13. If the money demand equation is (M/P) = 0.4 Y, then: Score: 0/6.66 14. The opportunity of holding money is the: Score: 6.66/6.66 15. In practice, in order to stop a hyperinflation, in addition to stopping monetary growth, the government must: Score: 6.66/6.66...
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ch. 4 quiz - Score 0/6.66 10 If inflation falls from 5...

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