Bank runs
a. will affect neither the money supply nor the money multiplier.
b. increase the money supply.
c. can be neither prevented nor mitigated by the Federal Reserve.
d. are a problem because banks only hold a fraction of deposits as reserves.
d
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If the economy in the graph shown is currently at point B, and the government enacts contractionary fiscal policy, in the short run the economy will most likely move to point:
A. A
B. It is likely to be unaffected and stay at point B
C. C
D. D
Which of the following countries has the greatest degree of measured income inequality?
a. Canada b. France c. United States d. Japan
The marginal value that a consumer places on the last unit can be read off of the
a. demand curve. b. supply curve. c. contract curve. d. production possibility curve.
The money wage rate is constant when moving along
A) only the potential GDP line. B) the aggregate supply curve, the potential GDP line, and the aggregate demand curve. C) only the aggregate supply curve. D) only the aggregate supply curve and the potential GDP line. E) neither the aggregate supply curve nor the potential GDP line.