When a $500 check is cleared from Bank A to Bank B, the M2 money supply:
a. Increases permanently.
b. Falls permanently.
c. Does not change.
.C
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A good with a horizontal demand curve has a demand
A) with an income elasticity of demand equal to 0. B) with a price elasticity of demand equal to 0. C) with a price elasticity of demand equal to infinity. D) for which there are no substitutes.
If potential GDP for the third quarter of 2013 = $20.4 billion, and the deviation from potential GDP for the third quarter of 2013 = $1.6 billion, then Real GDP for the third quarter of 2013 equals
A) $6.5 billion. B) $18.8 billion. C) $22 billion. D) $32.64 billion.
One would expect a shift down in the Phillips curve if there was a(n)
a. a decrease in aggregate demand. b. decrease in government spending. c. decrease in the money supply. d. a shift in aggregate supply to the left. e. Any of the above
Like deficit ceilings, debt ceilings are political mechanisms for forcing compromises on how best to use budget surpluses or deficits.
Answer the following statement true (T) or false (F)