1. Indicate whether each of the following is part of M1, M2, or neither. a. $95...

 

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1. Indicate whether each of the following is part of M1, M2, or neither. a. $95 on your campus card. b. $0.55 in the change cup of your car. c. $1,663 in your savings account. d. $459 in your checking account. 2. Using the quantity theory of money equation M*V=P*Y, if real GDP is $1000 and the price level $100 and if the velocity of money is constant at 5, a. how much money will be in the economy (money supply)? b. If GDP were to increase by 10% while prices and velocity remain unchanged, how much money will the economy need to keep the equation equal? 1. Indicate whether each of the following is part of M1, M2, or neither. a. $95 on your campus card. b. $0.55 in the change cup of your car. c. $1,663 in your savings account. d. $459 in your checking account. 2. Using the quantity theory of money equation M*V=P*Y, if real GDP is $1000 and the price level $100 and if the velocity of money is constant at 5, a. how much money will be in the economy (money supply)? b. If GDP were to increase by 10% while prices and velocity remain unchanged, how much money will the economy need to keep the equation equal?

Answer rating: 100% (QA)

a 95 on your campus card Belongs to M1 Campus cards are typically considered checking account substi... View the full answer