The purchase of a virtual item from an online company with a virtual currency causes the nation's:
a. Monetary base to remain the same.
b. M2 money supply to fall.
c. M2 money multiplier to fall.
d. Monetary base to rise.
.A
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If the Fed wants to reverse the effects of an adverse supply shock on unemployment, it should
a. increase the money supply growth rate which raises the inflation rate. b. increase the money supply growth rate which reduces the inflation rate. c. decrease the money supply growth rate which raises the inflation rate. d. decrease the money supply growth rate which reduces the inflation rate.
If Alex deposits $1,000 from her paycheck into her checking account and, at the same time, increases her credit card balance by $1,500, then her saving is ________, and her wealth ________.
A. +$1,000; decreases by $500 B. -$500; decreases by $500 C. -$500; increases by $2,500 D. +$500; decreases by $1,000