As banks lend money in the form of checking accounts:
a. M2 money supply rises when the loan is made and then falls when the loan is spent.
b. M2 money supply rises when the loan is made and then falls when the loan is cleared.
c. M2 money supply does not change.
d. M2 money supply rises when the loan is made and stays at that level until the loan is repaid.
e. M2 money supply rises when the loan is made and permanently stays higher until the central bank reverses it.
.D
You might also like to view...
Refer to Table 21.1. What is the median income on Richlandia?
A) $40,000 B) $69,000 C) $75,000 D) $85,000
To help pay for the cost of sport related injuries, the government imposes a tax on sellers of all sports equipment. Referring to the above figure, the area that equals the tax revenue the government raises from this tax on sports equipment is
A) P1P3ed. B) ecd. C) P0P2ca. D) P1P2cb.
If government policy makers become more secretive, then the short run aggregate supply curve should get
a. flatter. b. more horizontal. c. vertical. d. steeper.
A firm operating with diminishing total returns cannot be profit maximizing
What will be an ideal response?