Banks can
A. create money, but not destroy money.
B. destroy money, but not create money.
C. create and destroy money.
D. neither create nor destroy money.
C. create and destroy money.
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When the inflation rate is zero, the
A) real interest rate is greater than the nominal interest rate. B) real interest rate is less than the nominal interest rate. C) nominal interest rate is zero. D) real interest rate equals the nominal interest rate.
Refer to Table 2-18. What is Minnie's opportunity cost of making a hat?
A) 1/5 of an umbrella B) 1/4 of an umbrella C) 4 umbrellas D) 10 umbrellas
Net domestic product (NDP) is the total value of new goods available in the economy after worn out capital goods have been replaced
Indicate whether the statement is true or false
In some markets consumers may buy many different brands of a product. Which of the statements below best represents a situation where demand for a particular brand would be very elastic?
A. "I pinch pennies in buying other products, but like most people I feel I owe it to myself to get the best brand of this product." B. "The brand I buy is so superior to other available brands that I hardly consider the others." C. "The different brands are almost identical so I always buy the cheapest." D. "I use so little of that product that when I do buy it, I don't pay much attention to the price."