Suppose a national government increased its deficit and had to borrow $25 billion. The net effect on the banking system would be to:
a. Reduce bank reserves by $25 billion and reduce bank deposits by $25 billion.
b. Increase bank reserves by $25 billion and increase bank deposits by $25 billion.
c. Decrease government checking accounts in the banking system by $25 billion and increase the public's checking accounts there by $25 billion.
d. Increase government checking accounts in the banking system by $25 billion and increase the public's checking accounts there by $25 billion.
e. Increase government checking accounts in the banking system by $25 billion and reduce the public's checking accounts there by $25 billion.
.E
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According to purchasing-power parity, if it took 58 Indian rupees to buy a dollar today, but it took 55 to buy it a year ago, then the dollar has
a. appreciated, indicating inflation was higher in the U.S. than in India. b. appreciated, indicating inflation was lower in the U.S. than in India. c. depreciated, indicating inflation was higher in the U.S. than in India. d. depreciated, indicating inflation was lower in the U.S. than in India.
A 2009 article in The Economist noted that some studies have provided evidence indicating that multipliers are
a. smaller in closed economies than in open economies. b. larger in closed economies than in open economies. c. smaller in capitalist economies than in socialist economies. d. larger in capitalist economies than in socialist economies.
Hourly wages in Mexico are ____________ those paid in the United States for comparable work.
A. equal to B. one half C. one quarter D. one eighth
If the exchange rate is 0.8 euro per dollar, one dollar is equal to 1.25 euros
Indicate whether the statement is true or false