When an individual deposits currency into a checking account:
A. bank reserves decrease, which reduces the amount banks can lend and reduces the growth of the money supply.
B. bank liabilities increase, which reduces the amount banks can lend and reduces the growth of the money supply.
C. bank reserves are unchanged.
D. bank reserves increase, which allows banks to lend more and increases the money supply.
Answer: D
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An independent variable:
A) cannot be measured. B) cannot be represented on a bar chart. C) is manipulated by the experimenter in an experiment. D) in an experiment is determined by the other variables.
All of the following will cause the aggregate supply curve to shift to the right EXCEPT
A) discoveries of raw materials. B) a reduction in input prices. C) an increase in marginal tax rates. D) a reduction in international trade barriers.
The current-dollar GDP can be converted into a constant-dollar GDP by
a. adding a price index. b. subtracting a price index. c. multiplying by a price index. d. dividing by a price index.
The following graph shows the market equilibrium for corn in the United States. If the world price of corn is $2 and there are no trade restrictions, the United States will:
What will be an ideal response?