Currency held by the public plus balances in transactions accounts are the

A. Total reserves.
B. Required reserves.
C. Money supply (M1).
D. Money supply (M2).

Answer: C

Economics

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In the circular flow diagram,

a. money flows from the firms to the households through the product market b. money flows from the households to the firms through the product market c. money flows from the households to the firms through the resource market d. money flows from the households to the firms through both the product market and the resource market e. resources flow to the households from the firms through the product market

Economics

The crowding-out effect of higher interest rates can be avoided by

a. expansionary monetary policy. b. expansionary fiscal policy. c. contractionary monetary policy. d. decreasing taxes.

Economics