Questions from Macroeconomics

Q: Which of the following are considered money in the U.S

Which of the following are considered money in the U.S. economy? Which are not? Explain your answers by discussing each of the three functions of money. a. a U.S. penny b. a Mexican peso c. a Picasso...

Q: What is commodity money? What is fiat money? Which kind

What is commodity money? What is fiat money? Which kind do we use?

Q: What are the primary responsibilities of the Federal Reserve? If the

What are the primary responsibilities of the Federal Reserve? If the Fed wants to increase the supply of money, how does it usually do so?

Q: If nominal GDP is $400, real GDP is $200

If nominal GDP is $400, real GDP is $200, and the money supply is $100, then a. the price level is ½, and velocity is 2. b. the price level is ½, and velocity is 4. c. the price level is 2, and veloci...

Q: Suppose that changes in bank regulations expand the availability of credit cards

Suppose that changes in bank regulations expand the availability of credit cards so that people need to hold less cash. a. How does this event affect the demand for money? b. If the Fed does not respo...

Q: According to the quantity theory of money, what is the effect

According to the quantity theory of money, what is the effect of an increase in the quantity of money?

Q: List and describe six costs of inflation.

List and describe six costs of inflation.

Q: In an open economy, national saving equals domestic investment a

In an open economy, national saving equals domestic investment a. plus the net outflow of capital abroad. b. minus the net exports of goods and services. c. plus the government’s budget deficit. d. mi...

Q: Would each of the following transactions be included in net exports or

Would each of the following transactions be included in net exports or net capital outflow? Be sure to say whether it would represent an increase or a decrease in that variable. a. An American buys a...

Q: Who is responsible for setting monetary policy in the United States?

Who is responsible for setting monetary policy in the United States? How is this group chosen?