When banks make new loans, the effect on reserves is the same as
A) holding excess reserves.
B) expanding capital.
C) purchasing securities.
D) acquiring deposits.
C
You might also like to view...
Which of the following would NOT provide an incentive to reduce the amount of beef consumed?
A) an increase in the price of beef B) a subsidy to buyers of beef C) a decrease in the price of chicken D) a ban on beef sales by the Food and Drug Administration
The short-run supply curve and short-run marginal cost curve for a perfectly competitive firm coincide when the market price is greater than average variable cost
a. True b. False Indicate whether the statement is true or false
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y1. C. P3 and Y1. D. P3 and Y2.
When the U.S. dollar appreciates,
A. U.S. exports rise. B. U.S. imports decline. C. aggregate demand shifts inward. D. aggregate demand shifts outward.