Author Question: As of 2013, the outstanding U.S. currency is more than 1 trillion, which suggests that the typical ... (Read 34 times)

j.rubin · **on:** Jun 30, 2018

As of 2013, the outstanding U.S. currency is more than 1 trillion, which suggests that the typical U.S. citizen holds 3,600 in cash. Is this an accurate inference? Why?

A) Yes; because dividing total currency by total U.S. population roughly works out to 3,600 per person.
B) No; because criminals and foreigners hold large sums of dollars, so the average citizen holds far less.
C) No; because the average citizen probably does not have 3,600 in her checking account.
D) Yes; because the Fed rarely makes accounting mistakes when computing M1.
E) none of the above

Question 2

A consumption bundle

A) is a particular combination of consumption and leisure.
B) only measures a quantity of goods and services, but not the amount of leisure.
C) is a method of bringing home consumption goods.
D) measures the quality of a particular good.