The export component of GDP is avariable; core PPI is avariable.Select one:O A. stock; stockO B. flow; stockO C. flow; flowO D. stock; flowSuppose Izzy the Investor deposits $2 million of currency into her checking account. Izzy's action,everything else held constant, will cause bank reserves toand the monetary base toSelect one:O A. remain unchanged; decreaseO B. decrease; remain unchangedO C. decrease; increaseO D. increase; decreaseO E. decrease; decreaseO F. increase; remain unchangedO G. remain unchanged; increaseO H. increase; increase

Both GDP and core PPI are flow variable. Therefore answer is (C).

The export component of GDP is a variable; core PPI is a variable. Select one: OA. stock; stock O B. flow; stock OC. flow; flow O D. stock; flow Suppose Izzy the Investor deposits $2 million of currency into her checking account. Izzy's action, and the monetary base to everything else held constant, will cause bank reserves to Select one: O A. remain unchanged; decrease O B. decrease; remain unchanged O C. decrease; increase O D. increase; decrease O E. decrease; decrease

The export component of GDP is a variable; core PPI is a variable. Select one: OA. stock; stock O B. flow; stock OC. flow; flow O D. stock; flow Suppose Izzy the Investor deposits $2 million of currency into her checking account. Izzy's action, and the monetary base to everything else held constant, will cause bank reserves to Select one: O A. remain unchanged; decrease O B. decrease; remain unchanged O C. decrease; increase O D. increase; decrease O E. decrease; decrease

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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indicates that, in the long run, if the money supply increases at a slower rate than real GDP, there will be _ in the price level. Select one: O A. The equation of exchange; an increase O B. The quantity theory of money; an increase O . The equation of exchange; a decrease O D. The quantity theory of money; a decrease
If economists say that monetary policies cannot affect GDP in the long run, what do they mean? O a. Monetary policy will change potential output and inflation by equal amounts O b. Only fiscal policies can affect potential output O C. Workers and firms have money illusion O d. Workers and firms have no money illusion
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The transaction demand for money is positively related to O a. Interest rates O b. Income O c. Foreign exchange rates O d. All of the answers are correct
QUESTION 3 How are purchases or sales of foreign currency by a central bank are related to monetary policy? O A. a purchase of foreign currency will increase money supply B. a purchase of foreign currency will reduce the nominal exchange rate O C.a purchase of foreign currency will reduce money supply O D.a purchase of foreign currency will increase the nominal exchange rate