When a bank obtains a loan from the Fed, it follows that the
A) simple deposit multiplier rises.
B) bank (itself) can create more loans.
C) bank's reserves decrease.
D) bank's reserves remain unchanged.
E) none of the above
B
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Refer to the scenario above. If both economies have identical depreciation rate, then:
A) economy A's steady state equilibrium will lie to the left and above economy B's steady state equilibrium. B) economy A's steady state equilibrium will lie to the right and below economy B's steady state equilibrium. C) economy A's steady state equilibrium will lie to the left and below economy B's steady state equilibrium. D) economy A's steady state equilibrium will lie to the right and above economy B's steady state equilibrium.
Which theory of economic growth concludes that in the long run real GDP per person will be at its subsistence level?
A) the classical theory B) the neoclassical theory C) the new growth theory D) all of the theories
How did the global savings glut in the 2000s affect the U.S. current account balance?
A) It caused it to decline by increasing the value of the dollar. B) It caused it to decline by reducing the value of the dollar. C) It caused it to increase by increasing the value of the dollar. D) It caused it to increase by reducing the value of the dollar.
Which of the following is an injection into the economy?
a) Investment b) Savings c) Taxation d) Import spending