When a customer deposits $1,000 in a bank, the deposit is:
a. an asset of the Federal Reserve
b. included in M1 if it is currently in a commercial bank's vault.
c. a liability to the customer.
d. an asset to a commercial bank if it is currently in the bank's vault.
e. a liability for the bank as the bank owes it to the customer.
e
You might also like to view...
??Exhibit 16A-2 Macro AD/AS Models
?
?In Panel (b) of Exhibit 16A-2, the economy is initially in short-run equilibrium at real GDP level Y1 and price level P2. If the federal government or Fed decides to intervene, it would most likely:
A. ?decrease taxes. B. ?increase the money supply. C. increase the level of government spending for goods and services.? D. ?decrease the level of government spending for goods and services.
Refer to the above graph. Which factor will shift AD1 to AD2?
A. An increase in real interest rates. B. An increase in household indebtedness. C. An increase in national income abroad. D. An increase in business taxes.
For the recession of 2007-2009, it took ________ for employment to return to its cyclical peak
A) about 18 months B) about 2.5 years C) about 3.5 years D) more than 6 years
When economists refer to the economy's self-correcting mechanism, they are referring to the fact that the
a. economy will react automatically to a recessionary gap through inflation. b. economy will react automatically to an inflationary gap through deflation. c. economy will react automatically to an inflationary gap through inflation. d. simple multiplier is greater than the complex multiplier.