When comparing the velocity of M2 (V2), with the velocity of M1 (V1), the evidence suggests that V2 has been __________ and V1 has been __________ over time

If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $1000 billion, and excess reserves total $1 billion, then the monetary base is

A) $400 billion. B) $401 billion. C) $500 billion. D) $501 billion.

Under which of the following circumstances might a gallon of water be more valuable than a flawless one carat diamond? a. At a diamond shop next door to a clean public drinking fountain

b. At a diamond shop next door to a typical grocery store selling bottled water. c. In any U.S. city with safe, clean drinking water. d. In a life raft with 8 passengers who have been adrift on a remote part of the Pacific Ocean for a week with few prospects of an immediate rescue.