Multiple Choice
According to the U.S. Secret Service, approximately $2.6 billion of U.S. paper currency in circulation is counterfeit. The U.S. government is continually adding security features to its paper currency to help make counterfeit money easier to detect. If counterfeit currency remained undetected, a vast increase in the supply of counterfeit U.S. currency would
A) decrease aggregate demand in the short run.
B) lead to inflation.
C) reduce the amount of M1.
D) lower the nominal income of the average U.S. worker.
Correct Answer:

Verified
Correct Answer:
Verified
Q62: Economists use M2 to measure the amount
Q65: If people never withdrew money, how much
Q66: Assuming all excess reserves are loaned out,
Q68: Why is the money multiplier in the
Q69: Recall the Application about the Fed's response
Q70: Suppose after the semester ends, you take
Q71: In order for money to be an
Q72: The Federal Reserve is _ the U.S.
Q231: In order for a barter transaction to
Q278: Along with currency not in banks and