Nominal income is equal to real income if the CPI is less than 100

When Maria deposits $100 in currency in her checkable deposit at Bank of America, the immediate effect is that the quantity of M1

A) decreases. B) does not change. C) increases. D) changes, but the direction of the change depends on whether the deposit was accepted by a thrift institution or a commercial bank. E) changes only if Bank of America does not have excess reserves.

National income accountants measure the value of final goods and services with

A) market prices. B) fair prices. C) objective values. D) best-guess estimates as to what things are really worth.