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Federal funds are

When an employer increases wages at the same rate of inflation,

What function of money is highlighted when Tsai pays her water bill with cash?

________ provides the theoretical foundation for countercyclical fiscal policy.

Refer to the following table to answer the next three questions. Currency $31,500,000 Checkable deposits $18,000,000 Money market mutual funds $9,000,000 Small time deposits $6,000,000 Savings deposits $7,000,000 Traveler’s checks $500,000 What is the value of M2?

In a fractional reserve banking system, banks are

Monetary policy is controlled by the Federal Reserve. Fiscal policy is

An initial increase in government spending of $100 billion can create more than $100 billion of spending throughout the economy by, what economists call the ________ effect.

The marginal propensity to consume is a number between ________.

Suppose the marginal propensity to consume is equal to 0.4. If the government lowers tax rates and tax revenue falls by $50 billion, then disposable income will increase by________ billion and consumption spending will initially increase by ________ billion (before the multiplier effect kicks in).