If you deposit $100 of currency into a demand deposit at a bank, this action by itself
a. does not change the money supply.
b. increases the money supply.
c. decreases the money supply.
d. has an indeterminate effect on the money supply.
a
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Which of the following normative criteria rejects a policy whenever there exists an alternative policy that could unanimously defeat it?
a. Majority rule. b. The efficiency criterion. c. The Pareto criterion. d. The potential Pareto criterion.
Suppose that a consumer has a marginal propensity to consume of 0.8. If this consumer receives an extra €2 of disposable income, her saving would be expected to increase by
A. €0.40. B. €0.80. C. €1.20. D. €1.60.
According to the random walk theory of stock market? pricing,
A. if the price went up today it will probably go up tomorrow. B. people with economic training can make certain profits in the stock market. C. there are no predictable trends in stock prices. D. on any given? day, fifty percent of the stocks will increase in price and fifty percent will decrease in price.
The most likely source of investment funds for a proprietorship is
A. sales of bonds. B. sales of stocks. C. the personal funds of the owner. D. loans from banks.