The FDIC helps prevent
A) inflation. B) bank runs.
C) risky behavior on the part of bankers. D) risky behavior on the part of depositors.
Question 2
An increase in real GDP affects the demand for money because
A) tax payments rise because more income is earned.
B) there is an inverse relationship between the quantity money demanded and nominal GDP.
C) at the higher price level, it takes more dollars to make expenditures.
D) when real GDP increases, more money is needed to make expenditures.
E) the larger real GDP, the higher the real interest rate.
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