Which of the following are constraints on deposit creation?
a. the decision by consumers and businesses to take money out of transactions accounts and hold it as cash
b. the decision by banks to stop lending money to qualified borrowers
c. the decision by consumers, businesses, and governments to stop borrowing
d. all of the above
Answer: d. all of the above
You might also like to view...
Pick the decision maker from the list below
A) The head of Al Qaeda B) The Taliban C) The Government of Afghanistan D) The Middle East E) All of the above are decision makers.
Every Giffen good is a necessity but not every interior good is a necessity.
Answer the following statement true (T) or false (F)
The sign of the price elasticity coefficient for a normal good will:
a. always be negative. b. always be positive. c. be positive if demand is elastic but negative if demand is inelastic. d. be positive if demand is inelastic but negative if demand is elastic.
Suppose that land and labor are substitute resources. If the wage rate rose, the employment of land would rise only if
A. the output effect outweighed the substitution effect. B. the substitution effect outweighed the output effect. C. the substitution effect was equal to the output effect.