Banks create money in the economy by:
A. charging higher interest on savings than loans.
B. charging higher interest on loans than savings.
C. loaning out all of their deposits to borrowers.
D. loaning out part of each deposit, which will be redeposited by someone else.
Answer: D
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In the figure above, the poorest 20 percent of all households receive what share of all income?
A) 10 percent B) 20 percent C) 30 percent D) 40 percent
Refer to Table 2-9. What is Japan's opportunity cost of producing one wristwatch?
A) 0.04 pounds of rice B) 4 pounds of rice C) 25 pounds of rice D) 40 pounds of rice
A perfectly competitive firm is a "price maker."
a. True b. False Indicate whether the statement is true or false
Suppose the actual and expected price levels in an economy are initially equal. However, the actual price level falls eventually due to a change in economic conditions. Which of the following will occur in the long run?
What will be an ideal response?