View the step-by-step solution to:


1.Velocity is

 another term for the money multiplier.

 equivalent to real GDP.

 equivalent to

the price level.

 equivalent to nominal GDP.

 the number of times the average dollar is spent in a year.

2.Which of the following is not part of M1?

 Checkable deposits

 Savings deposits


 Traveler's checks


3.Which of the following are considered among the chief functions of money?

  1. Serves as a medium of exchange
  2. Serves as a store of value
  3. Is highly liquid

 I only.

 II only.

 III only.

 I and II only.

 I, II, and III.

Which of the following is not counted in M2?

 Checkable deposits

 Savings deposits

 Currency and coins

 Traveler's checks

 Vault cash

If you need $200 to buy a new iPhone™ next year and interest rates are 2%, the amount of money you need to deposit into the bank this year is






If you save $1,200 at 6% this year, next year your money will be worth






Crowding out occurs when

 the government is using contractionary fiscal policy.

 the government is using expansionary fiscal policy.

 Congress increases personal income taxes.

 Congress increases business taxes.

 Congress increases spending and personal income taxes by the same amount.

Top Answer

please find below... View the full answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question