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Elenna [48]
3 years ago
13

The differences between the various 'Money Supplies' (M1, M2, …) are base on A) The volume of the economy they make up C) Whethe

r the element is bank or gov. issued B) The degree of liquidity of each element D) Consumer preferences
Business
1 answer:
postnew [5]3 years ago
8 0

Answer:

The correct option here is B) the degree of liquidity in each element.

Explanation:

Money supply can be described as total amount of money , which is present in an economy at a point of time.

Money supply can be classified as M0,M1,M2  etc , where these different money supply's reflects different type of liquidity that each type of money has in the economy. M0, M1  actually consists of narrow money and contain coins and notes, which are in circulation in the economy and these are easily convertible in to cash and they are most liquid elements and same way M2 would be less liquid than M1, and so on.

You might be interested in
In the short run, expansionary monetary policy ___________ real gross domestic product (GDP), ___________ unemployment, and ____
iren2701 [21]

Answer:

a.raises; lowers; raises

Explanation:

An expansionary monetary policy is usually undertaken by the Central bank to increase money supply.

When money supply is increased, output increases and real GDP rises.

The rise in money supply which causes output to increase would lead to an increase in demand for Labour. This would reduce unemployment.

Because of rise of money supply, the supply of money in the economy would rise and the price level would rise.

I hope my answer helps you.

5 0
3 years ago
In the United States, what does the general level of a family’s income have to do with the amount of cash the family is likely t
Sophie [7]

Answer:

The general level of family's income is directly proportional to the amount of cash a family is likely to hold

Explanation:

Of the three motives of money, transactional motives of money relates to holding money(whether at hand or at bank) to meet daily transaction e.g buying of fuel/gas, transport fare to work place.

If the level of income of a family increases, other things being equal, the family tends to hold more money for their daily transaction. The level of income is directly proportional to amount of cash a family holds...

For example, family A earns $100 per week and holds $30 to meet daily transaction or unforeseen circumstances. If his pay increases to$150, it is intuitive for Mr A to hold higher money, lets say $50

6 0
3 years ago
The duel between Aaron Burr and Alexander Hamilton was the result of:
earnstyle [38]

Answer:

Option D: Burr's belief that Hamilton had slandered him.

Explanation:

The duel stemmed from a history of animosity between both men over the years. The existing personal animosity and personal bitterness between both individuals came to a head in the run-up to the governorship election in New-York in 1804.

The Albany Registrar published a letter sent from Charles Cooper to senator Philip Schuyler which referenced a statement made by General Hamilton describing Colonel Burr as being a dangerous and despicable human being incapable of running a government.

The ensuing duel was as a result of this defamation.

7 0
3 years ago
In the Republic of Sildavia, a market basket of goods and services cost $130 in 2009, $140 in 2010, and $160 in 2011. Based on t
yarga [219]

Answer:

23.07%

Explanation:

For computing the inflation rate first we have to determine the price index for 2011 which is shown below:

Price index for 2011 is

= (market basket of goods and services cost in year 2011) ÷ (market basket of goods and services cost in year 2009) × 100

= ($160) ÷ ($130) × 100

= 123.07%

Now the inflation rate is

= (Price index for 2011 - price index for 2009) ÷ (price index for 2009) × 100

= (123.07 - 100) ÷ (100) × 100

= 23.07%

And, the price index for 2009 is

= ($130) ÷ ($130) × 100

= 100%

4 0
3 years ago
Russ and Linda are married and file a joint tax return claiming their three children, ages 4, 7, and 18, as dependents. Their ad
hoa [83]

Answer:

$3,700

Explanation:

Given that

Adjusted gross income for the year 2019 = $415,300

Children ages = 4, 7, and 18 as dependents

Based on the given information, Russ and Linda's total child and other dependent credit for the year 2019 is

= (Maximum amount per qualifying child + non-refundable tax credit) - (deductible amount × age)

= ($2,000 × 2 + $500) - ($50 × 16)

= $4,500 - $800

= $3,700

After $400,000 the $50 is decreased for each and every $1,000

5 0
3 years ago
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