FP1 5.02 - Money Supply and GDP

Only cash

Currency and other liquid instruments

Only savings deposits

Only government bonds

The total value of all finished goods and services produced within a country's borders

The total amount of exports and imports

The total amount of money in circulation

The total number of jobs in an economy

GDP adjusted for inflation

GDP calculated at current market prices

GDP including only consumer spending

GDP excluding government spending

Nominal GDP is inversely related to the money supply

Nominal GDP is unaffected by the money supply

Nominal GDP tends to rise with the money supply

Nominal GDP tends to fall with the money supply

GDP adjusted for inflation

GDP excluding exports

GDP including only government spending

GDP at current market prices

Decreased lending

Decreased consumption

Lower interest rates

Higher interest rates

Stable asset prices

Deflation

Speculative investments and asset price escalation

Decreased economic activity

Reducing employment

Decreasing GDP

Price stability

Increasing the money supply indefinitely

The control of government spending

The buying or selling of Treasury bonds and other securities by the Federal Reserve

The regulation of stock market prices

The adjustment of tax rates

The Department of Treasury

The Congress

The Federal Reserve

The President