The Amount of Currency in the Hands of the Public

question 89

Multiple Choice

The amount of currency in the hands of the public is approximately what percentage of M1?

• A)50%
• B)25%
• C)30%
• D)90%

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Definitions:

Shortage

A market condition whereby the request for a service or product goes beyond what is readily available.

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the point where supply and demand curves intersect, resulting in market equilibrium.

Demand Schedules

A table that shows the quantity of a good that consumers are willing and able to purchase at various prices, holding all else constant.

Demand Curve

A graphical representation of the quantity of a good that consumers are willing and able to buy at different prices.