When you pay off a loan at a bank, the money supply becomes smaller.
Answer the following statement true (T) or false (F)
True
The money supply becomes smaller because the amount in transactions accounts will decrease.
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In the U.S. balance of payments, exports to Europe are recorded as a
a. a use of funds in the current account. b. negative item in the current account. c. capital inflow item. d. capital outflow item. e. None of the above
Use the following general linear demand relation:Qd = 680 - 9P + 0.006M - 4PR where M is income and PR is the price of a related good, R. If M = $15,000 and PR = $20 and the supply function is Qs = 30 + 3P, equilibrium price and quantity are, respectively,
A. P = $6 and Q = 38. B. P = $40 and Q = 250. C. P = $12 and Q = 200. D. P = $50 and Q = 170. E. P = $55 and Q = 195.
Velocity is the rate at which money changes hands.
Answer the following statement true (T) or false (F)
Table 17.1Refer to Table 17.1. The marginal product of the third unit of labor is:
A. 30. B. 50. C. 60. D. 160.