Checkable deposits are:
a. included in both M1 and M2.
b. included in M1 but not M2.
c. included in M2 but not M1.
d. not included in either M1 or M2.
Question 2
In case of the classical model, increase in aggregate expenditure would:
a. shift the aggregate demand curve upward leading to an increase in real GDP and prices.
b. shift the aggregate demand curve downward leading to an increase in real GDP and prices.
c. shift the aggregate demand curve upward leading to a decrease in real GDP and prices.
d. shift the aggregate demand curve downward leading to a decrease in real GDP and prices.
e. shift the aggregate demand curve upward leading to an increase in prices and no change in real GDP.
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