Author Question: In the midst of the Great Depression, President Roosevelt in a radio address to the nation ... (Read 89 times)

Cooldude101 · **on:** Jun 29, 2018

In the midst of the Great Depression, President Roosevelt in a radio address to the nation encouraged everyone to spend ourselves into prosperity. His advice reflected

A) Say's Law.
B) the expenditure multiplier effect.
C) his view that there should be no saving and no dissaving.
D) his view that induced expenditure was less important than autonomous expenditure.
E) the difference between actual aggregate expenditure and planned aggregate expenditure.

Question 2

The Second National Bank of Townville has 400,000 in checking deposits, 125,000 in savings deposits, 500,000 in loans, 20,000 in its reserve account at the Fed, and 5,000 of currency in its vault.

What is the amount of these assets and liabilities that is in M1?

dantucker · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

B

Answer to Question 2

The only deposit that is in M1 is the checking deposits, so the amount that is in M1 is checking deposits of 400,000.