macro study guide 2

macro study guide 2 - Study Guide, Exam #2, Econ 2020, Fall...

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Study Guide, Exam #2, Econ 2020, Fall 2009 Economists argue that investment spending rises/falls as -----. Why is that? The usual definition of money is this: money is ---- Money is anything that is generally accepted as payment for goods and services and repayment of debts . [1] [2] The main functions of money are distinguished as: a medium of exchange , a unit of account , a store of value , and occasionally, a standard of deferred payment M1 : The total of all physical currency part of bank reserves + the amount in demand accounts ("checking" or "current" accounts). M2 : M1 + most savings accounts , money market accounts , retail money market mutual funds,and small denomination time deposits ( certificates of deposit of under $100,000). The amount of money circulating in the U.S. is often measured using M1. What's M1? M2 is sometimes used as a measure of the money supply. What does M2 consist of? Monetarists argue that aggregate nominal income will equal ---- According to monetarist thinking, the only way to increase income is by ----. The velocity of money indicates ----.
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This note was uploaded on 03/03/2011 for the course ECON 2020 taught by Professor Mukherjee during the Spring '08 term at Western Michigan.

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macro study guide 2 - Study Guide, Exam #2, Econ 2020, Fall...

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