The monetary aggregate, M1, increases when
A) an individual cashes a check written by a business.
B) an individual purchases clothes with a debit card.
C) an individual switches funds from a savings account to a checking account.
D) an individual buys groceries with a credit card.
Ans: C) an individual switches funds from a savings account to a checking account.
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The main policy goal for a country according to the mercantilists is
A) to create a one-time deficit in the balance of payments. B) to create a continuing deficit in the balance of payments. C) to create a one-time surplus in the balance of payments. D) to create a continuing surplus in the balance of payments. E) to create specie overflows.
The Fed operating procedures employed between 1979 and 1982 resulted in ________ swings in the federal funds rate and ________ swings in the M1 growth rate
A) increased; increased B) increased; decreased C) decreased; decreased D) decreased; increased