During a bank run, depositors decide to hold more currency relative to deposits and banks decide to hold more excess reserves relative to deposits
a. Both the decision to hold relatively more currency and the decision to hold relatively more excess reserves would make the money supply increase.
b. Both the decision to hold relatively more currency and the decision to hold relatively more excess reserves would make the money supply decrease.
c. The decision to hold relatively more currency would make the money supply increase. The decision to hold relatively more excess reserves would make the money supply decrease.
d. The decision to hold relatively more currency would make the money supply increase. The decision to hold relatively more excess reserves would make the money supply decrease.
b
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The right to openly support and democratically select national leaders is
A) political freedom. B) capital freedom. C) population freedom. D) economic freedom.
Which of the following changes would cause American net exports to increase?
A) An increase in the real value of the dollar B) An increase in American income C) An increase in foreign income D) A shift in demand by American consumers away from domestically produced goods
The price elasticity of demand will be larger in absolute value if
a. expenditure on the good represents a smaller proportion of the consumer's total expenditure b. we define the good more broadly c. we define the good more narrowly d. the number of substitutes is smaller e. the number of consumers is larger
Kyle puts a greater proportion of his portfolio into government bonds. Kyle's action
a. increases both risk and the average rate of return. b. decreases both risk and the average rate of return. c. increases risk, but decreases the average rate of return. d. decreases risk, but increases the average rate of return.