Macroeconomics
10th Edition
ISBN: 9780134896441
Author: ABEL, Andrew B., BERNANKE, Ben, CROUSHORE, Dean Darrell
Publisher: PEARSON
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Question
Chapter 7, Problem 3RQ
To determine
Role of Central Bank in a country
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Change in the money supply
Explain what determines the demand for money.
Wouldn't the answer for this one be an increase in price level since we have an increased demand for money? I'm only given one attempt at this; please help asap.
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- Which of the following statements represent a use of money that is not consistent with its definition? "I got some money at the ATM with my debit card," "I just used my credit card as money to buy a new television." "I wrote a check on my deposit account to pay for dental services." "I will accept either currency or gold as money for the purchase of my house."arrow_forwardWhy would a booming economy affect the demand for money?arrow_forwardState three ways in which a government can influence the value of its currency. For each, state whether the activity affects the supply-side or demand-side of the market, and name a disadvantage of the strategy.arrow_forward
- How does an increase in the money supply get into the hands of consumers? What do they do with it?arrow_forwardWhy can fiat money be successfully used as a currency despite the fact that it has no intrinsic value backing it up?arrow_forwardWhich of the below statements DOES NOT CORRECTLY capture the meaning of the word "money" as economists use the term, and as Charles Wheelan explains the term? Group of answer choices Whatever serves as money must be available in abundance, and must not be scarce. It serves as a medium of exchange, something that facilitates trade and transactions. It serves as a unit of account, so that the costs of all kinds of goods and services can be measured can be compared using one scale. Whatever serves as money must be portable and durable.arrow_forward
- The monetary system in any economy facilitates trade and allows people to trade more efficiently, as compared to a barter economy. In the united states the monetary authority is the federal reserve system what are the requirements for something to be considered money? Why does the dollar have value?arrow_forwardWhy are bank accounts included in our definition of the money supply?arrow_forwardWhat is money? What are the functions of money? What items may serve as money? Do you know of any other examples of money that is not currency or coins, in the US or other countries? Does money have to come from a government?arrow_forward
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