If you put $500 into a checking account, the immediate effect (do not consider the money multiplier which we will study in the next chapter) is:
a. M1 rises, M2 rises, and the monetary base remains the same.
b. M1, M2, and the monetary base rise.
c. M1, M2, and the monetary base fall.
d. M1, M2, and the monetary base remain the same.
e. M1 rises, M2 falls, and the monetary base remains the same.
.D
You might also like to view...
Miniville is an isolated town located on the southern shore of Lake Condescending, a very large lake. The western edge of Miniville is adjacent to impassable mountains and there are no towns or businesses for many miles to the east. The 300 residents of Miniville are evenly distributed along 3 miles of shoreline on the lake, east of the mountains. Lake Shore Drive, the only street in town, provides access to Miniville's homes and businesses. All residents live between the lake and the street; businesses locate on the other side of the street. Lake Shore Drive is 3 miles long, and the points labeled A, B, and C are 1, 2, and 3 miles from the western end of Lake Shore Drive, respectively. All residents of Miniville shop at the store located closest to their homes. src="https://sciemce.com/media/4/ppg__rrr0818190951__f1q215g1.jpg" alt="" style="vertical-align: 0.0px;" height="117" width="538" />________ residents of Miniville live west of point B, and ________ live east of point A.
A. 150; 150
B. 100; 200
C. 200; 100
D. 200; 200
Economies of scale refers to when:
A. an increase in the quantity of output decreases average total cost in the long run. B. an increase in the quantity of output increases average total cost in the long run. C. average total cost does not depend on the quantity of output in the long run. D. None of these is true.
Virtual currency unit 1 (VCU1) is poses a __________ risk to nations in which is it used because ___________________________
a. High; it can be used directly by end users to buy goods and services. b. High, it weakens central banks' abilities to control their monetary bases. c. Low; it can be earned and spent only in virtual worlds. d. Low; purchases and sales of VCU1 change only modestly a nation's monetary base. e. High; it is capable of causing dramatic changes in a nation's M2 money multiplier.
Refer to the information provided in Figure 25.2 below to answer the question(s) that follow.
Figure 25.2Refer to Figure 25.2. Suppose the money demand is currently at Point B. A movement to Point A could be caused by
A. a decrease in nominal income. B. an increase in the interest rate. C. an increase in nominal income. D. a decrease in the interest rate.