Multiple Choice
Which of the following statements is incorrect?
A) The flow of spending depends on the supply of money and the velocity of money.
B) A higher level of GDP can be caused by higher prices or by increased production.
C) The determinants of the velocity of money are well-known and can be easily influenced by the Fed.
D) The Fed's main job is to regulate the flow of spending.
Correct Answer:
Verified
Correct Answer:
Verified
Q61: A bank can create new money only
Q62: A rising price level (inflation)causes<br>A) reduced barter
Q63: Which of the following characteristics is required
Q64: If a country is experiencing hyperinflation, it
Q65: An asset that can be quickly turned
Q67: During the 1980s, M1 doubled, and the
Q68: An effective medium of exchange must<br>A) be
Q69: Banks destroy money when they<br>A) lend securities.<br>B)
Q70: The primary role of financial institutions is
Q71: When hyperinflation occurs,<br>A) GDP falls to zero.<br>B)