The money creation process generated by an injection of reserves stops when
a. people deposit their loans into other banks.
b. reserve requirements are raised.
c. the increase in required reserves equals the size of the injection.
d. bankers begin to fear runs and stop making loans.
c
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Since 1925, the longest expansion in the United States lasted:
A. 21 months. B. 43 months. C. 60 months. D. 120 months.
If real income rises 5%, prices rise 3%, and nominal money demand rises 7%, what is the income elasticity of real money demand?
A) 3/4 B) 4/5 C) 5/6 D) 6/7
Suppose a market basket of goods and services costs $400 in the base year and the consumer price index (CPI) is currently 125 . This indicates the price of the market basket of goods is now:
a. $275. b. $425. c. $500. d. $525.
Within the Keynesian aggregate expenditures model, which of the following autonomous changes would decrease the equilibrium output?
a. A decrease in investment spending. b. An increase in net exports. c. An increase in government spending. d. An increase in consumption expenditures