Posted by Sharp on .
Which of the following is true about the quantity of money in the U.S. economy? (A)It is equal to the amount of cash in circulation (B)It is much greater than the amount of cash in circulation (C)It is equal to the value of the government's gold reserves (D)It is equal to the total amount of income
my answer - (B); gold reserves were abandoned by president Nixon in 1971 so (C) ruled out; not sure about others.
What about the amount in bank accounts? Shouldn't that be added to the amount of cash in circulation? After all, it is available to buy things. Oh, you did say B. Correct.