The self-correcting tendency of the economy means that falling inflation eventually eliminates:

The U.S. dollar's effective exchange rate since 2002 has steadily weakened. However, it didn't weaken as much against ALL currencies as it did against the currencies of the major developed countries (which include the pound and the euro). This could be because:

a. the U.S. government has a strong dollar policy. b. the large trading partners, China and Japan, did not allow their currencies to appreciate greatly against the U.S. dollar. c. the rate of appreciation is always somewhat greater than the rate of depreciation. d. the United States does not trade with some nations, so the effective rate is biased.

Are outstanding credit card balances counted as part of the money supply?

A. Yes; they are used to purchase things, and therefore, they are included in the money supply figures. B. No; money is an asset, while the credit card balances are a liability. Thus, they are not included in the money supply figures. C. Partly; credit card balances of $100 or less are included in the M1 money supply, but the money supply figures do not include balances in excess of $100. D. Partly; credit card balances are included in the M1 money supply, but not the M2 money supply.