Smart cards will not much affect the demand for money if
A) the money supply is defined to include smart card balances.
B) the money supply is defined to exclude smart card balances.
C) the balance of the smart card is not considered to be electronic money.
D) the reserves of the card issuing institution fall when the smart card is "loaded" with funds from an account the customer already has at that institution.
A
You might also like to view...
A ban on imports, a tariff, or a quota raises the price to domestic consumers. This means that consumers will buy less of the product at a higher price. The loss associated with this is called
A) production associated loss. B) productive consumption loss. C) consumption distortion loss. D) consumer misperception loss.
The United States has imposed taxes on some imported goods that have been sold here by foreign countries at below their cost of production. These taxes
a. benefit the United States as a whole, because they generate revenue for the government. In addition, because the goods are priced below cost, the taxes do not harm domestic consumers. b. benefit the United States as a whole, because they generate revenue for the government and increase producer surplus. c. harm the United States as a whole, because they reduce consumer surplus by an amount that exceeds the gain in producer surplus and government revenue. d. harm the United States as a whole, because they reduce producer surplus by an amount that exceeds the gain in consumer surplus and government revenue.