According to data, the U.S. money stock stands at about $1.1 trillion dollars. If we divide that by 245 million, the approximate number of adults in theU.S., we should each be holding about $4,490 in cash. But we are not. What explains this?a. This shows that the Fed has no idea how much cash is really in circulation.b. If they included children in the population count, it would be correct.Oc. The answer is cryptocurrency, which bumps up the amount of cash in the money supply.Od. People outside the US hold dollars, and some in the US operate all cash businesses, so they use more than the average.

Given, Money stock is $1.1 million. This divided by 245 gives the approximate number of adults in…

According to data, the U.S. money stock stands at about $1.1 trillion dollars. If we divide that by 245 million, the approximate number of adults in the U.S., we should each be holding about $4,490 in cash. But we are not. What explains this? a. This shows that the Fed has no idea how much cash is really in circulation. Ob. If they included children in the population count, it would be correct. Oc. The answer is cryptocurrency, which bumps up the amount of cash in the money supply. Od. People outside the US hold dollars, and some in the US operate all cash businesses, so they use more than the average.

According to data, the U.S. money stock stands at about $1.1 trillion dollars. If we divide that by 245 million, the approximate number of adults in the U.S., we should each be holding about $4,490 in cash. But we are not. What explains this? a. This shows that the Fed has no idea how much cash is really in circulation. Ob. If they included children in the population count, it would be correct. Oc. The answer is cryptocurrency, which bumps up the amount of cash in the money supply. Od. People outside the US hold dollars, and some in the US operate all cash businesses, so they use more than the average.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Monetary System

Section: Chapter Questions

Problem 12PA

See similar textbooks

Related questions

Q: The chart below depicts the US Treasury yield curve on December 2, 2022 versus the curve in November…

A: Yield curve is a curve that plots the interest rates of bonds that have equal quality of credit but…

Q: Suppose that in response to huge job losses in the U.S. textile industry, Congress imposes a 100…

A: Due to huge job losses in the U.S. textile industry, congress imposes a 100 percent tariff on…

Q: 21- Who gets paid after the death of the policy-holder/insured? a. The husband/wife of the…

A: In an insurance agreement, the insurer is responsible for compensating one party for losses brought…

Q: Consider the optimal pricing policy of a monopolist selling information goods. There are three…

A: A monopolist is a type of market where the single seller sells the product which does not have any…

Q: A companys customers are either old or new. A customer may be able or not able to provide an…

A: A decision table is a logic-based data entry system used to handle business operations. The…

Q: Bonus. .The IS-LM model suggests that savings reduces output in the economy. We can show this by…

A: The IS-LM model or rather the Keynesian cross from which the IS curve originates states that because…

Q: How could Venezuela's inflationary problem be resolved once and for all? Consider and remark on the…

A: The term inflation from the perspective of economics can be defined as an increase in the value of…

Q: Suppose the makers of PEZ candies have decided to test market a new dispenser with red, white, and…

A: Demand function : 5Q = 3000 - 200p Q = 600 - 40p Price elasticity of demand refers to the…

Q: 5

A: The market demand function represents the total quantity of a good demanded by all individuals at…

Q: The demand function for a certain commodity is p(x)=10-0.001x, where p is measured in dollars and x…

A: The profit maximization level of output is defined when the marginal revenue is equal to the…

Q: If the CPI in period 1 is 125 and the CPI in period 2 is 150, then the rate of inflation between…

A: Here, given information is: CPI in period 1: 125 CPI in period 2: 150 To find: inflation rate…

Q: Assume you are a member of the Federal Reserve, and you are adhering to the dual mandate. The…

Q: If the Federal Reserve Bank is concerned about high inflation, they should ____________ government…

A: Inflation is the increase in the general price level in the economy. The central bank of a nation…

Q: Use the following data to work problems from a) to e) Income = 20$, price of cake is 4$, price of…

A: DISCLAIMER “Since you have asked multiple questions, we will solve the first three subparts for…

Q: Productivity increases when input decreases while output remains the same. true or false?

A: Productivity is positive relation with output and an inverse relation with input. Productivity =…

Q: Question 4 Refer to the information provided in Table 22.6 below to answer the question(s) that…

A: Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: Which of the following sets of characteristics is definitely describing a good with an elastic…

A: Price Elasticity of Demand measures the percentage change in quantity demanded of a good or service…

Q: Which type of global exchange rate regime creates an asymmetry, with only one country able to…

A: The monetary system that depends on the fixed quantity of gold is known as GSS ( gold standard…

Q: Consider the US economy in the last couple years, in particular before the current crisis impacted…

A: The American central bank is known as the Federal Reserve ("Fed"). The Fed is technically a…

Q: For maximum profit, a firm hires labor up to the point at which the wage equals (i) (ii) (iii) the…

A: The firm will produce where the profit is maximum. Profit is the difference between total revenue…

Q: Determine the single-value effective tax rate for a corporation that has a federal tax rate of 37%…

A: The effective tax rate is the proportion of income that a person or business owes/pays in taxes. The…

Q: Plant sizes get larger as you move from ATC-1 to ATC-4. Output 1,500 2,000 2,500 3,000 3,500 4,000…

A: There are four plant sizes which get larger as move from ATC-1 to ATC-4. In ATC-3, from output 1,500…

Q: When you graph the Phillips curve, what goes on the y-axis? Change in inflation Rate of inflation…

A: A.W Phillips has popularized the concept of Phillips curve. This curve shows that there is actually…

Q: You have an asset with a cost of investment (I) of $10,000 with a useful life (N) of 5 years, and a…

A: Given Initial investment I=$10,000 Salvage value (S)=$2000 Life of asset (N)=5 years Required:…

Q: Please explain each option in details with step by step proper answer . Thank you . Which of the…

A: Monopolistic competition is a market structure in which there are large number of buyers and sellers…

Q: Discuss the drawbacks of primary-sector-intensive outward-looking trade policies. How did the…

A: The developed world receives the majority of the trade that developing economies produce. Rarely do…

Q: A sample unit is defined as: A unit that is available for selection at some stage of the sampling…

A: When talking about sampling, it can be said that is one of the way of making research and analyzing…

Q: Given the cash flows and information below, perform an B/C ratio analysis. Assume an MARR of 7% and…

A: The benefit-cost ratio (BCR), which can be stated in monetary or qualitative terms, is a metric that…

Q: If the supply of land is perfectly inelastic, then an increase in the demand for land ca by…

A: Demand can be classified as elastic, inelastic or unitary. An elastic demand is one in which the…

Q: Personal consumption expenditures in billions of dollars are

A: A measurement of consumer spending is called personal consumption expenditures (PCE). Spending on…

Q: You quit your job as an analyst making $50,000. You then take your $500,000 in savings and open a…

A: An economic profit or loss is the difference between the price of a product's selling profits and…

Q: From the perspective of the destination economy, "Demand Pull" immigration generally results in…

A: People emigrate for a variety of economic, social, and physical reasons, which are typically…

Q: 27) During the 2008 recession, the Federal funds "Discount" rate was set by the Fed at a record low…

A: The real interest rate can be calculated using Fisher's equation by deducting the nominal interest…

Q: Natural resource dependence might lead to recurrent conflict through a vicious spiral called

A: Please check the solution below

Q: 7. Please fill the following table (you can assume there are only two inputs), write explicitly the…

A: Cost minimization is the point where the total cost of production is minimized with the given output…

Q: The following are elements of a strong intellectual property protection system, EXCEPT:

A: Introduction. Intellectual property rights are rights granted to an individual so as to protect…

Q: a) About Country A, what is your estimate of the country's marginal propensity to consume (MPC)…

A: Given,

Q: The "inverted U" hypothesis implies that the majority of technological innovations will occur in…

A: When talking about 'Inverted U' hypothesis, it can be said that this hypothesis shows a sharp…

Q: What is prisoners dilemma? and how it works? Explain in detail

A: The prisoner's dilemma is a decision-analysis conundrum when two people acting in their own…

Q: Suppose that the United States and Saudi Arabia can each produce two products, oil and personal…

A: introduction International trade is one of the most important significant area of economic study.…

Q: Gino derives utility from only two goods, carrots (Qc) and donuts (Qd). His utility function is as…

A: A consumer's decision to buy has two effects in response to price changes. The substitution effect,…

Q: The nominal exchange rate is the price of one currency in terms of another currency. A nominal…

A: Exchange rate: Currency depreciation is the loss of worth of a currency in terms of another…

Q: For Nos. 48-50. A special purpose machine is to be acquired by paying a P15.000 initial cash payment…

A: Given, Initial Cost = P15,000 Debt = P135,000 Cash Inflow = P40,000 Useful Life = 10 Years MARR =…

Q: 9. Which statement is incorrect? I. An increase in the general price index means that the purchasing…

A: (9). Increase in general price index means increase in the price of goods and services. Both…

Q: A monopolist with constant marginal cost of $4 faces demand Qp-24-2P. This implies that the inverse…

A: Inverse demand curve: P=12-QD2 Marginal revenue MR=12-QD Marginal cost MC=$4 Price ceiling at P=$6 A…

Q: What are the main assumptions of the Maximum Likelihood Approach? Why they are important? How does…

A: Given some observed data, maximum likelihood estimation is a technique for estimating the parameters…

Q: Perfect Competition Firm cost equation: TC = 64 + 4Q+Q² Market demand: Q = 696- 4P Solve for how…

A: Perfect competition refers to a market in which there are a large number of buyers and sellers and…

Q: Answer the following: 1. Three most important characteristics of a monopolistically competitive…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Suppose that the current EUR/GBP exchange rate is £0.86 per euro. The current 6-month interest rates…

A: Price of one currency in terms of another currency is known as exchsnge rate.Exchange rates can be…

Q: Consider a consumer that seeks to minimize his expenditure E to achieve a given 1/4 1/4 level of…

A: Given Expenditure E=p1x1+p2x2 Utility function U¯=x11/4x21/4 Here x1 and x2 denote good…

Question

According to data, the U.S. money stock stands at about $1.1 trillion dollars. If we divide that by 245 million, the approximate number of adults in the
U.S., we should each be holding about $4,490 in cash. But we are not. What explains this?
a. This shows that the Fed has no idea how much cash is really in circulation.
b. If they included children in the population count, it would be correct.
Oc. The answer is cryptocurrency, which bumps up the amount of cash in the money supply.
Od. People outside the US hold dollars, and some in the US operate all cash businesses, so they use more than the average.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Recommended textbooks for you

Essentials of Economics (MindTap Course List)

Economics

ISBN:

9781337091992

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning