In a study published in 1963, Milton Friedman and Anna Schwartz found that in every business cycle they studied over nearly a hundred-year period
A) the growth rate of the money supply decreased before output decreased.
B) interest rates decreased before output decreased.
C) the growth rate of federal government spending decreased before output decreased.
D) the growth rate of state and local government spending decreased before output decreased.
A
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The Bank of Pitland, which is the highest financial institution in Pitland, has bought treasury bonds worth $2.2 billion from a private bank. How will this transaction affect the balance sheets of the private bank and the Bank of Pitland?
What will be an ideal response?
Money ________
A) is always composed of coins and paper B) loses its value as it becomes older C) requires a double coincidence of wants D) is any commodity that is generally acceptable as a means of payment