The U. S. penny is made primarily of zinc. There have been several times in recent years when zinc prices have been high and it has cost the U. S. Treasury more than one cent to manufacture a penny. There are currently about 1.4 billion pennies in circulation. Economist François Velde of the Federal Reserve Bank of Chicago has proposed making the current penny worth 5 cents. Source: Austan Goolsbee, "Now That a Penny Isn't Worth Much, It's Time to Make It Worth 5 Cents," New York Times , February 1, 2007. The effect of this proposal would cause ▼ no impact on a decrease in an increase in the value of M1. Is this change likely to have much impact on the economy? A. Yes B. No

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Jaylene

Business

20 February, 10:22

The U. S. penny is made primarily of zinc. There have been several times in recent years when zinc prices have been high and it has cost the U. S. Treasury more than one cent to manufacture a penny. There are currently about 1.4 billion pennies in circulation. Economist François Velde of the Federal Reserve Bank of Chicago has proposed making the current penny worth 5 cents. Source: Austan Goolsbee, "Now That a Penny Isn't Worth Much, It's Time to Make It Worth 5 Cents," New York Times , February 1, 2007. The effect of this proposal would cause ▼ no impact on a decrease in an increase in the value of M1. Is this change likely to have much impact on the economy? A. Yes B. No

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Asa Grimes · Answer 1

Is this change likely to have much impact on the economy? B. no

Explanation:

This change is not likely to have much impact on the economy although the effect of this proposal would cause an increase in the value of M1.

It costs 1.6 cents to make to produce each US one cent coin, called penny because of the rising price of zinc, which makes up 97% of each coin, according to the Wall Street Journal and the demand for zinc is rising as it appears we're starting to run out of it from the world's biggest zinc mines.