Checking account deposits are counted in M1, but savings account deposits are not because
A) checking deposits can be used for payment; cash in savings cannot.
B) checking deposits are a form of consumption; savings deposits are a form of investments.
C) Trick question! Neither type is counted in M1.
D) Trick question! Both deposit types are counted in M1.
A
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All else equal, a large decline in the real interest rate will shift the:
A. investment demand curve leftward. B. investment demand curve rightward. C. investment schedule upward. D. investment schedule downward.
By drawing a demand curve with ________ on the vertical axis and ________ on the horizontal axis, economists assume that the most important determinant of the demand for a good is the ________ of the good
A) quantity; price; quantity B) price; quantity; quantity C) price; quantity; price D) quantity; price; price