Which of the following could cause the money supply to decrease?
A. The economy emerges from a recession into rapid growth.
B. The society moves to a cashless society.
C. Banks become more conservative in making loans.
D. People and institutions borrow more.
Answer: C
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A) downward sloping. B) upward sloping. C) bowed in toward the origin. D) bowed out from the origin.
"There is a direct relationship between economic growth rates and the wealth of a nation." Do you agree or disagree? Why?
What will be an ideal response?
Which of the following markets would have the highest Herfindahl index? A market with
a. ten firms of widely different sizes b. ten firms of approximately the same size c. five firms of widely different sizes d. five firms of approximately the same size e. eight firms exactly the same size
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a. saved by the firm at each alternative interest rate b. invested by the firm at each alternative interest rate c. saved by the firm at each alternative rate of time preference d. invested by the firm at each alternative marginal resource cost e. saved by the firm at each alternative marginal revenue product of investment