The appropriate index of prices increased

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Reference no: EM131378676

1. Assume that between 1990 and 2000 the money GDP of an economy increased from $3 trillion to $8 trillion and that the appropriate index of prices increased from 100 to 200. Which of the following expresses GDP for 1990 in terms of 2000 prices?

a) $1 trillion

b) $3 trillion

c) $4 trillion

d) $6 trillion

2. Which of the following is not a component of the M1 money supply?

a) demand deposits

b) large-denomination (more than $100) bills

c) interest-earning checking deposits such as money market account

d) certificate of deposit

Reference no: EM131378676

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