5. Match each concept in Column A with the best definition or example in Column B.Column AColumn B1. The idea that changes in the money supply affect onlyprices, not outputa. Expansionary monetary policyb. Fiat money2. Residential investmentc. Accelerator principle3. Standardizationd. Monetary neutrality4. A dollar coin made of minerals worth $.10e. Velocityf. Liquidity5. The ease with which an asset can be used in trade6. Federal Reserve open market sale of bondsg. Commodity money7. A silver coinh. A good property for money to have8. A silver certificatei. A piece of paper representing a claim onsomething of value9. Vault cash and bank deposits at the Federal Reserve10. Currency in circulation, checkable deposits, and travelersj. Bank reserveschecks11. The number of times that a unit of money changes handsin a yeark. MI1. Very sensitive to interest rates12. Relates investment to GDP growthm. Contractionary monetary policy13. The Federal Reserve lowers the discount rate

Expansionary monetary policy is when a central bank uses its tools to stimulate the economy.

1. The idea that changes in the money supply affect only prices, not output a. Expansionary monetary policy b. Fiat money 2. Residential investment c. Accelerator principle d. Monetary neutrality e. Velocity f. Liquidity g. Commodity money h. A good property for money to have 3. Standardization 4. A dollar coin made of minerals worth $.10 5. The ease with which an asset can be used in trade 6. Federal Reserve open market sale of bonds 7. A silver coin 8. A silver certificate i. A piece of paper representing a claim on something of value 9. Vault cash and bank deposits at the Federal Reserve 10. Currency in circulation, checkable deposits, and travelers checks j. Bank reserves 11. The number of times that a unit of money changes hands in a year k. Ml 1. Very sensitive to interest rates 12. Relates investment to GDP growth m. Contractionary monetary policy 13. The Federal Reserve lowers the discount rate

1. The idea that changes in the money supply affect only prices, not output a. Expansionary monetary policy b. Fiat money 2. Residential investment c. Accelerator principle d. Monetary neutrality e. Velocity f. Liquidity g. Commodity money h. A good property for money to have 3. Standardization 4. A dollar coin made of minerals worth $.10 5. The ease with which an asset can be used in trade 6. Federal Reserve open market sale of bonds 7. A silver coin 8. A silver certificate i. A piece of paper representing a claim on something of value 9. Vault cash and bank deposits at the Federal Reserve 10. Currency in circulation, checkable deposits, and travelers checks j. Bank reserves 11. The number of times that a unit of money changes hands in a year k. Ml 1. Very sensitive to interest rates 12. Relates investment to GDP growth m. Contractionary monetary policy 13. The Federal Reserve lowers the discount rate

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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