The relationship between GDP and the money supply has gotten stronger since the 1980s

If households and firms decide to hold less of their money in checking account deposits and more in currency, then initially, the money supply

A) will decrease. B) will not change. C) will increase. D) may increase or decrease.

The fact that every dollar that the government spends or transfers must ultimately be provided by the taxes and user charges it collects plus government borrowing is known as the

A) government balance sheet constraint. B) government budget constraint. C) tax collection constraint D) user charge constraint.