We know how many dollars banks create using the:
A. money multiplier.
B. federal funds.
C. demand deposits.
D. interest rate.
A. money multiplier.
You might also like to view...
The Fed decreases the quantity of money to counteract
A) positive net exports. B) a federal budget deficit. C) a rise in the unemployment rate. D) a recessionary ga
For all points above the 45-degree line, planned aggregate expenditure will be less than GDP
Indicate whether the statement is true or false
Assuming the Federal Reserve makes an open-market purchase of a government security worth $10,000 . By writing a check to pay for this security, the Federal Reserve
a. reduces the balance of its assets by $10,000. b. reduces the balance of its liabilities by $10,000. c. neither reduces the balance of its assets nor the balance of its liabilities by $10,000. d. creates a new $10,000 liability against itself. e. both c and d are correct.
Which of the following is usually true about government-provided goods?
a. These goods have a zero opportunity cost. b. These goods are not scarce. c. People do not have to pay a fee to enjoy these goods. d. The invisible hand is at work to ensure these goods are provided in the market