Which of the following combinations would have an indeterminate effect on the size of the money supply?
a. an increase in the percentage of money people want to hold as currency and a decrease in the fraction of deposits banks want to hold as excess reserves
b. an increase in the percentage of money people want to hold as currency and an increase in the fraction of deposits banks want to hold as excess reserves
c. a decrease in the percentage of money people want to hold as currency and a decrease in the fraction of deposits banks want to hold as excess reserves
d. none of the above
a
You might also like to view...
In economics, the factor of production "land" includes all of the following EXCEPT
A) animals, birds, and fish. B) energy. C) wild plants. D) oil. E) plastics.
If the price level increases, then there will be
a. a movement upward along the AD curve b. a downward movement along the AD curve c. an AD curve shift to the right d. an AD curve shift to the left e. an AS curve shift to the right
Monopolists usually earn economic rent
a. True b. False Indicate whether the statement is true or false
Investment depends on the ________ interest rate because higher inflation will ________ the value of the dollars with which the firm will repay the loan.
A. real; increase B. nominal; increase C. real; decrease D. nominal; decrease