Suppose Bob withdraws money from his savings account and deposits it into his checking account. What happens to M1?
A. It decreases.
B. It increases.
C. It stays the same.
D. The effect is unknown.
Answer: B
You might also like to view...
What is the barrier to entry in a monopoly?
a. There is no barrier; anyone can enter the market. b. It a minor barrier; some can enter the market. c. It varies from industry to industry. d. It is a complete barrier; no entry is allowed.
Which of the following costs are part of a firm's opportunity costs? I. costs for resources bought in markets II. costs for resources the firm owns III. costs for resources supplied by the owner
A) I and II B) I and III C) I only D) I, II, and III
When depository institutions have negative excess reserves, it indicates that the banking system is not "loaned up."
a. True b. False Indicate whether the statement is true or false
In an economy, the government wants to increase aggregate demand by $50 billion at each price level to increase real GDP and reduce unemployment. If the MPS is 0.4, then it could increase government spending by:
A. $10 billion B. $20 billion C. $31.25 billion D. $40.50 billion