Which of the following is true?
a. Demand deposits and other checkable deposits have replaced paper and metallic currency as the major source of money used for transactions in the United States.
b. Credit cards are not money; they are substitutes for the use of money in exchange.
c. Most of the money that we use for day-to-day transactions is not official legal tender.
d. all of the above
Question 2
The recognition lag refers to the:
a. time taken for changes in the money supply to be translated into changes in realGDP.
b. time taken by policymakers to formulate an appropriate policy to solve aneconomic problem.
c. time taken by policies to have an impact on the different macroeconomic variables.
d. time taken by policymakers to recognize that an economic problem exists.
e. natural difference between monetary policy timing and fiscal policy timing.
Which of the following statements is true of linkage?
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