If you deposit $500 into a savings deposit, the immediate effect (do not consider the money multiplier which we will study in the next chapter) is:
a. M1, M2, and the monetary base rise.
b. M1 falls, M2 remains the same, and the monetary base remains the same.
c. M1 rises, M2 rises, and the monetary base remains the same.
d. M1, M2, and the monetary base remain the same.
e. M1 rises, M2 falls, and the monetary base remains the same.
.B
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In accordance with the law of supply, if the price doubled, the quantity supplied would generally
a. rise. b. fall. c. double. d. drop by half.
It has been said that well-educated citizens are necessary for democracy. Discuss this idea in economic terms. What market imperfection might occur and what are the appropriate government policies to correct it?
When there is a sudden decrease in the real interest rate in Canada, the Canadian dollar will depreciate
a. True b. False Indicate whether the statement is true or false
In the long run, equilibrium for a monopolist is when
A. the short-run and long-run average cost curves are at their lowest points. B. the short-run average cost curve is at its lowest point. C. the long-run average cost curve is at its lowest point. D. None of these is necessarily true.