When Maria deposits $100 in currency in her checkable deposit at Bank of America, the immediate effect is that the quantity of M1 ________ because ________
A) changes only if Bank of America has excess reserves; if the bank does not have excess reserves, the overall effect to M1 is too small to notice
B) decreases; checkable deposits are included in M2 but are not included in M1
C) does not change; both currency and checkable deposits are included in M1
D) changes, but the direction of the change cannot be determined; the direction of the change depends on what Bank of America does with the deposit
E) increases; both currency and checkable deposits are included in M1
C
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The U.S. Balance of Payments is constructed by
A) the U.S. Department of Labor. B) the U.S. Department of Agriculture. C) the U.S. Department of Commerce. D) the Council of Economic Advisers to the President.
When market price is above the equilibrium level, it will _____; when price is below the equilibrium level it will _____; when price is at the equilibrium level it will _____.
Fill in the blank(s) with the appropriate word(s).
Mallory Trammell is a homemaker. Last week, she was busy with her normal household activities. How will she be classified by the Bureau of Labor Statistics?
What will be an ideal response?
Government spending that changes automatically without action by Congress is
A. payments to contractors for routing services performed. B. national defense. C. a noncontrollable expenditure. D. discretionary payments.