Banks cannot influence the money supply if they hold all deposits in reserve.
Answer the following statement true (T) or false (F)
True
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An increase in the nonborrowed monetary base, everything else held constant, will cause
A) the money supply to fall. B) the money supply to rise. C) no change in the money supply. D) demand deposits to fall.
In the above figure, the equilibrium level of planned saving plus net taxes is
A) $1.0 trillion. B) $2.0 trillion. C) $3.0 trillion. D) $4.0 trillion.
Putting money into mental categories can:
A. cause people to take risks they wouldn't otherwise take. B. help people organize their expenditures. C. cause irrational behavior. D. All of these are true.
An economist who claims that an increase in government spending would result mainly in a higher price level believes the economy is operating where
a. the MPC is small. b. the MPC is large. c. aggregate supply curve is flat. d. aggregate supply curve is steep.