If people decide to hold less money as currency and more as checking deposits, this will most likely cause
a. a decrease in bank reserves.
b. a decrease in required reserves.
c. an increase in the discount rate.
d. an increase in the money supply.
D
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One of the following is not a characteristic of perfect competition. Which is it?
A. Firms advertise to increase their market share. B. Profits are low in the long run. C. Consumers pay little attention to brand names. D. Firms pay no attention to their competitors’ output levels.
We say that a good has elastic demand whenever the absolute value of the price elasticity of demand is greater than one. A one percent change in price therefore causes
A) exactly a one percent change in the quantity demanded. B) a change of less than one percent in the quantity demanded. C) a greater than one percent change in quantity demanded. D) a change that cannot be determined based on one percent.
Capital stock is defined as the retail value that was paid for a firm's productive assets.
Answer the following statement true (T) or false (F)
Which of the following statements in the context of U.S. exports is true?
a. The U.S. exports products produced in the low wage industries. b. Primary products account for the largest share of U.S. exports to developed nations. c. The U.S. mainly exports labor intensive goods. d. Most U.S. exports are produced in high-wage industries. e. A bulk of U.S. exports to developing nations comprise of perishable commodities.