Question: Why does a credit-card transaction to buy an item fail to count as part of the M1 measure of money?

Why does a credit-card transaction to buy an item fail to count as part of the M1 measure of money?

Step by Step Solution

★★★★★

3.48 Rating (174 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Hence for the final analysis we can say that A c... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

1282-B-E-M-E(7495).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Q:

You are a newly appointed senior leader in a multinational technology company that operates in various countries and cultural contexts. The company has been experiencing challenges related to...

Q:

What different sources of revenue are available from credit card lending? Outline the clearing process with a credit card transaction. What is the biggest risk in credit card loans?

Q:

Which date is used to record a credit card transaction?

Q:

Classify each of the following costs as fixed or variable: a. Credit card transaction fee paid by retailer$0.20 per transaction plus 2% of the sales amount b. Yearly salaries paid to marketing staff...

Q:

1 .In many casinos, a person buys chips to use for gambling. Within the casino's walls, customers often can use these chips to buy food and drink or even a hotel room. Do chips in a gambling casino...

Q:

1 .In many casinos, a person buys chips to use for gambling. Within the casino's walls, customers often can use these chips to buy food and drink or even a hotel room. Do chips in a gambling casino...

Q:

Final_Exam_Macro Question 1 (2 points) Purchasing-power panty theory does not hold at all times because many goods are not easily transported and the same goods produced in different countries may be...

Q:

When a consumer withdraws $200 from her savings account and deposits the $200 into her checking account, Question 11 pts When a consumer withdraws $200 from her savings account and deposits the $200...

Q:

QUESTION 1 For barter to occur there must be a double coincidence of wants for each good to be exchanged. one person who pays cash. two people willing to pay with credit. hyperinflation. 1.11 points...

Q:

QUESTION 1 For barter to occur there must be a double coincidence of wants for each good to be exchanged. one person who pays cash. two people willing to pay with credit. hyperinflation. 1.11 points...

Q:

Section A. The unemployment rate in April 2020 was 14.7%, while in March 2020 was 4.4%. What is your best estimate for the real output growth rate in this period? Assume the US real output was...

Q:

Evaluate the following in terms of Gamma function [Hint: Evaluate the func- tion in terms of Beta function then convert it to Gamma using the appropriate formula] 1 1 (1 3 dx - -

Q:

Some of Americas best known brand names in food products are produced by Kraft. These include Kraft, Velveeta, Parkay, Miracle Whip, Philadelphia, Cracker Barrel, Sealtest, Light n Lively, Breyers...

Q:

How many days must an individual life insurance policy's grace period be for payment of premiums? A ) 3 1 B ) 6 0 C ) 4 5 D ) 1 5

Q:

Kushla is an INFOSEC administrator for a company with 500 employees, this is an ongoing job (not a short contract) and she wishes to stay at this company for a long time. Her manager, Kevin gives her...

Q:

Illustration of Outcomes This should include a detailed cash-flow for a minimum of 5 years, and a projected financial position for year 5. I recommend the use of visual aides such as graphs,...

Q:

Consider the circuit in (Figure 1) with both switches open. At t = 0 switch S is closed while switch S2 is left open. Figure

Q:

As youve read, the poem of Inanna and Dimuzi includes agricultural metaphors that are a bit more explicit than your typical Old Farmers Almanac entry. Discuss the underlying meaning of this poem and...

Q:

An electronics manufacturer produces a range of consumer and commercial grade electronic devices. These include television sets, sound systems, computer monitors, mobile phones and many other...

Q:

2. Do you think the IBM WebSphere MQ technology adopted by DP World was a good solution? What advantages can you identify?

Q:

Five years ago, Hensley purchased a house. At that time, being unable to pay the full purchase price, she borrowed funds from Thrift Savings and Loan, which in turn took a mortgage at 6.5 interest on...

Q:

Five years ago, Hensley purchased a house. At that time, being unable to pay the full purchase price, she borrowed funds from Thrift Savings and Loan, which in turn took a mortgage at 6.5 interest on...

Q:

Marsala, a college student, signs a one-year lease agreement that runs from September 1 to August 31. The lease agreement specifies that the lease cannot be assigned without the landlords consent. In...

Q:

Journalize the following, assuming a 360-day year is used for interest computations: Apr. 30- Issued a $648,000,90-day, 8% note dated April 30 to Misner Co. on account. July 30 Paid Misner Co. the...

Q:

Check my work During the course of your examination of the financial statements of the Hales Corporation for the year ended December 31, 2018, you discover the following: a. An insurance policy...

Q:

Please answer B & C! C. Eastwood, A. North, and M. West are manufacturers' representatives in the architecture business. Their capital accounts in the ENW partnership for 201 were as follows:...