When cash is deposited in a checkable-deposit account at a bank, there is a(n)
A. increase in the bank's liabilities.
B. increase in the money supply M1.
C. decrease in the money supply M1.
D. increase in the bank's net worth.
Answer: A
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An increase in public saving has what impact on the market for loanable funds?
A) The demand for loanable funds decreases. B) The supply of loanable funds decreases. C) The supply of loanable funds increases. D) The demand for loanable funds increases.
Predictions of severe shortages due to impending natural resource depletion
a. are widely accepted by resource economists even though such predictions are a relatively new occurrence. b. have been wrong in the past, but most resource economists believe that the threat of resource depletion is now far more severe than ever before. c. are typically made without adequate recognition and consideration of resource price elasticities. d. typically assume that price elasticities are greater than they really are.
Someone says to you: “Inflation benefits the rich and hurts the poor” and asks for your assessment as an economist. What would be your response?
What will be an ideal response?
Which of the following is a measure of economic growth that is most useful for comparing living standards?
A. Growth in nominal GDP B. Decreases in the rate of unemployment C. Increases in real GDP per capita D. Increases in real GDP