PLEASE ANSWER ALL PARTS ALL OF THE REQUIRED INFORMATION IS THERE THANK YOU VERY
ID: 1211956 • Letter: P
Question
PLEASE ANSWER ALL PARTS ALL OF THE REQUIRED INFORMATION IS THERE THANK YOU VERY MUCH
Board of Governors The major components of money supply is: Coins Paper money in circulation Gold certificate Demand deposits In United States the money supply is comprised of: Paper currency, coins, gold certificate and time deposits Currency, demand deposits, and Series E bonds Coins, paper currency checking accounts and credit balance with brokers Coins, paper currency and demand deposits The money supply is "backed" by: Dollars-for-dollar with gold billion Dollar-for-dollar with gold and silver Government bonds The government's ability to control supply of money and therefore to keep its value relatively stable The level of aggregate expenditure on a public-private economy is comprised of: C+I+G-T C+G C+I-G C+I+G+T The value of the balance budget multiplier Is 1-MPC Is 1-MPS Is equal to 1 Varies directly with the MPC On the basis of the diagram below, answer questions 23-25 Private Expenditure BJL stands for: YBJ stands forExplanation / Answer
18) Option B is correct.
Reason: Travelers checks are the smallest component. Next comes demand deposits. Coins acquire a second place and the most significant part is Currency notes in circulations.
19) Option D is correct.
Reason: M1 component of money supply is called narrow money and is called the measure of money supply. It includes demand deposits, Coins and Currency notes in circulations.
20) Option D is correct.
Reason: US government does not back dollar with gold. It is the faith of people in the government that it will never default.
21) Option A is correct.
Reason: The Keynesian cross enunciates that there is one level of national income at which planned expenditure equals actual expenditure. Planned expenditure has four components: government spending, consumption spending and taxes and investment spending. Any change in these constituents alters the level of planned expenditure and thus liberates multiplied impact on income.
22) Option C is correct.
Reason: When government purchases and taxes are raised by the same amount, then the multiplier is termed as Balanced Budget Multiplier. It has a value of 1 if the taxes imposed are lump-sum in nature.
23) BJL stands inflationary gap
24) YBJ stands for deflationary gap
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