When banks gain ________, they can ________ their loans; and the money supply ________
A) withdrawals; increase; expands B) reserves; increase; expands
C) withdrawals; decrease; expands D) reserves; increase; contracts
B
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If by purchasing a little more milk and a little less ice cream you could increase your total utility,
a. the MU of milk must be greater than that of ice cream b. the MU of ice cream must be greater than that of milk c. the MU/P of milk must be greater than that of ice cream d. milk must be cheaper than ice cream e. the MU of milk will increase
Which of the following occurs in the long run neoclassical growth model without technological change?
A. Capital deepening ceases. B. Real wages stop growing. C. The return to capital is constant. D. Real interest rates are constant. E. All of the above.
In the United States in 1929, ________ people were unemployed.
A. 250,000 B. 1.5 million C. 13 million D. 51 million
Assume that the real rate of interest is 5 percent and a lender charges a nominal interest rate of 15 percent. If a borrower expects that the rate of inflation next year will be 10 percent and the actual rate of inflation next year is 12 percent:
a. neither the borrower nor the lender benefits from inflation. b. both the borrower and the lender lose from inflation. c. the borrower benefits from inflation, while the lender loses from inflation. d. the lender benefits from inflation, while the borrower loses from inflation.