As a result of an increase in the money supply, some banks may end up with excess reserves. What is the likely result?
A) Banks will raise interest rates.
B) Banks will make more loans, thereby contributing to a decrease in aggregate demand.
C) Banks will make more loans, thereby contributing to an increase in aggregate demand.
D) Banks will spend the excess reserves by paying their employees more.
C
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Assuming all else equal, if the marginal product of labor rises, ________
A) there is a rightward movement along the labor demand curve B) the labor demand curve shifts to the right C) there is a leftward movement along the labor demand curve. D) the labor demand curve shifts to the left
If a cigarette manufacturer sells its cigarettes to a distributor and contractually restricts the distributor from reselling the cigarettes outside the state of New York, this is an example of ________.
A) a tying arrangement B) territorial confinement C) a requirements contract D) exclusive dealing
When those that do not contribute to the costs of a public good are denied use, this is a case of
A. exclusion. B. being nonrival. C. price discrimination. D. infeasibility.
Which of the following is not a factor that influences investment spending?
A. Transfer payment policy B. Business confidence C. Business expectations D. Technical change