When a bank loans out $1,000, the money supply
A. increases.
B. decreases.
C. does not change.
D. None of the above is correct.
Answer: A
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In January, buyers of gold expect that the price of gold will fall in February. What happens in the gold market in January, holding everything else constant?
A) The demand curve shifts to the right. B) The quantity demanded decreases. C) The demand curve shifts to the left. D) The quantity demanded increases.
In a monopolistically competitive market, entry into the industry
A) is relatively easy. B) is blocked. C) is difficult due to extensive government regulation. D) is as difficult as entry into a monopoly.
Other issues that exist within the ECB include all of the following, EXCEPT:
A) the level of competence of officials. B) the lack of formal accountability. C) an insistence on consensus decisions, which could cause policy responses to lag. D) too much independence, causing other Eurozone entities to believe they have no voice.
Which of the following is best characterized as a public? good?
A. A church B. Police protection C. Primary education D. A public library