If you deposit $500 into a savings deposit, the immediate effect (do not consider the money multiplier which we will study in the next chapter) is:
a. M1 rises, M2 rises, and the monetary base remains the same.
b. M1, M2, and the monetary base rise.
c. M1, M2, and the monetary base fall.
d. M1, M2, and the monetary base remain the same.
e. M1 falls, M2 remains the same, and the monetary base remains the same.
.E
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A point to the left of the LM curve would represent a situation in which
A) money demand is greater than money supply. B) money supply is greater than money demand. C) money demand is greater than goods demand. D) money demand is less than goods demand.
The simple leverage ratio is defined as:
a. Depreciation of an asset / Value of an asset b. Current assets / current liabilities. c. Equity of an asset / Value of an asset d. Value of an asset / Equity of an asset. e. Equity of an asset / Original cost of an asset.
Law of Demand
What will be an ideal response?
The mergers between Sony and Columbia Pictures and between MCA and Matsushita are ________ mergers.
Fill in the blank(s) with the appropriate word(s).