Definitions of the money supply

Assignment Help Macroeconomics
Reference no: EM131038871

Suppose you have $2000 in currency in a shoebox in your closet. One day, you decide to deposit the money in a checking account. How will this action affect the M1 and M2 definitions of the money supply?

Reference no: EM131038871

Questions Cloud

Illustrate the extended form game : Illustrate the extended form game of the two-period, two-firm game. Describe the second-period pricing for the case in which the first-period product is nondurable and durable. Identify the first period durability choice. Calculate the social-welfare..
Government spending rises : Life has become yet more complicated. Government spending works with a distributed lag. Now when $1 billion is spent today, GDP increases by $1 billion this period and $1.5 billion next period. a. What happens to the path of GDP if government spe..
Price of an ipad in switzerland : Assume that an iPad in the US is $500 while in Switzerland it costs 400 Swiss Francs.  Suppose the nominal Swiss Franc/Dollar exchange rate is 1.1 Swiss Francs per Dollar.
Write a college-level essay about the city council agenda : Write a 2 page college-level essay about the item, telling me what the item was about, who was for and against it, what happened, and what you think about it.
Definitions of the money supply : Suppose you have $2000 in currency in a shoebox in your closet. One day, you decide to deposit the money in a checking account. How will this action affect the M1 and M2 definitions of the money supply?
What are the two properties of public goods : What are the two properties of public goods? List an example of both public and private goods, andindicate whether each of them possess these two qualities. Explain why or why not.
Understand the factors that influence customer behaviour : The airline industry is currently facing many challenges, one of which is the level of competition. The rapid growth of Low Cost Carriers (LCCs) is adding to that competitive environment, especially with an increase in demand for low cost travel. ..
Does the ama code of ethics address this issue : Does the AMA Code of Ethics address this issue? Go to http://www.marketingpower.com and review the code. Then write a brief paragraph on what the AMA Code of Ethics contains that relates to Moore's dilemma.
German unification involved massive expenditures : German unification involved massive expenditures for infrastructure in the east, as well as transfer payments to many former East Germans. Should such expenditure have been financed by (a) money creation because of their transitory, exceptional na..

Reviews

Write a Review

Macroeconomics Questions & Answers

  Problem regarding the four cognitive theories

Briefly discuss each of the four cognitive theories, and explain how each of these theories can explain employee behavior.

  Which health insurance program have added coverage for drugs

For example, in the United States, less than 20 percent of spending on prescription drugs was covered by health insurance in 1970. This share increased to near three-quarters by 1998. What factors account for this

  How much should advertising expenditures be changed

Smith has been informed that on April 1st, Delta Co., a producer of a substitute good, will be decreasing the price of its product by 10%. Given a cross elasticity of 2 and the following information answer the following questions. For this proble..

  Firm profitability in short run and long run

Analyze in detail using graphical tools what would happen to the number of firms and firm profitability in short run and long run if demand for product falls and if it rises.

  Why does not a political equilibrium lead to efficiency

1. Why does not a political equilibrium lead to efficiency in the way that equilibrium in private goods markets does 2. Why is a voter in the "middle of the pack" likely to be satisfied with the outcome of political decisions

  1 suppose the marginal costs of reading are consatnt and

1. suppose the marginal costs of reading are consatnt and the marginal benefits of reading declineover time. initially

  Question about open economy multiplier

In a closed economy, marginal propensity to consume .6. If the economy opens up to world and marginal propensity to import is .4, using the Keynesian model of output determination;

  Explain the relationship among household disposable

Explain the following statement: "Changes in disposable income lead to movements along the consumption function while changes in wealth lead to a shift of the consumption function." Use examples to illustrate your response.

  Calculate the total revenue and total economic profit

Calculate the total revenue and total economic profit for this pizza shop at each level of output. Calculate the pizza shop's marginal cost and marginal revenue at each level of output.

  What if the heuser company currently outstanding bonds have

What if The heuser company currently outstanding bonds have 10percent coupon and a 12 percent yeild to maturiity and a mariginal tax rate of 35 percent what is the after tax cost of debt?

  Why do necessities tend to have demand that price inelastic

what distinguishes public good from private goods what happens to total revenue given a price increase and demand is inelastic Why What is the difference b/w economic and accounting profit Why is a difference b/w them important

  Difference between a change in supply and quantity

The primary difference in a change in supply and a change in the quantity supplied is,

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd