When cash is withdrawn from a checkable-deposit account at a bank, the
A. composition of money supply M1 does not change.
B. money supply M1 increases.
C. money supply M1 does not change but its composition changes.
D. money supply M1 decreases.
Answer: C
You might also like to view...
Since the slope of a downward-sloping demand curve is constant, the price elasticity of demand does not change when moving along this line
a. True b. False Indicate whether the statement is true or false
Agraria uses bushels of wheat to quote prices. In this case, bushels of wheat act as a
a. medium of exchange. b. store of value. c. commodity value. d. unit of account.
Exhibit 6-9 Cost schedule for firm X OutputQuantity Total FixedCost Total VariableCost 0 $100 $ 0 1 100 50 2 100 84 3 100 108 4 100 127 5 100 150 As shown in Exhibit 6-9, the marginal cost of producing the third unit is:
A. $50. B. $16. C. $24. D. $23.
An inflationary spiral can emerge when
A. Desired spending at full employment falls short of full-employment output. B. Actual investment equals desired investment. C. An increase in investment exceeds available savings. D. Desired leakages exceed desired injections.