Sally writes a $10,000 check to Harry who deposits it in the same bank.
A. Both deposits and reserves of depository institutions increase.
B. Both deposits and reserves of depository institutions remain unchanged.
C. Reserves at depository institutions increase, but deposits remain the same.
D. Both deposits and reserves at depository institutions decrease.
E. Reserves at depository institutions decrease, but deposits remain the same.
B. Both deposits and reserves of depository institutions remain unchanged.
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Suppose that the production function for the economy is Y = AK1/4L3/4. Assume that real GDP is $8,000 billion, capital stock is $32,000 billion, and the labor supply is 120 million (or 0.120 billion) workers
Total factor productivity for this economy is A) 16.50 B) 1,016.52 C) 2,083.33 D) 2,933.65
Ceteris paribus, explain why it is that when a lower ceiling price is imposed below equilibrium price, a greater deadweight loss results
Government expenditures on capital goods such as roads could increase aggregate supply. Such effects on aggregate supply are likely to matter more in the short run than in the long run
a. True b. False Indicate whether the statement is true or false
A market structure with barriers to entry is
a. a monopoly. b. oligopolistically competitive. c. monopolistically competitive. d. perfectly competitive.