Author Question: In an economy, there is 200 million in currency held outside banks, 100 million in traveler's ... (Read 69 times)

vicotolentino · **on:** Jun 29, 2018

In an economy, there is 200 million in currency held outside banks, 100 million in traveler's checks, 250 million in currency held inside the banks, 300 million in checking deposits, and 600 million in savings deposits.

The value of M1 is ________. A) 750 million
B) 1,200 million
C) 1,150 million
D) 600 million

Question 2

A movement downward along the demand for loanable funds curve occurs when

A) the expected profit from investment increases.
B) business expectations become more optimistic.
C) the real interest rate falls.
D) the supply of loanable funds decreases.