The total money supply in the economy will not increase if you deposit $200 given to you on your birthday in your checking account, and the bank holds $100 of that money as vault cash, and loans out the other $100
Indicate whether the statement is true or false
false
You might also like to view...
Which of the following statements is true of a flexible exchange rate system?
A) Market forces tend to undervalue a currency over time. B) Market forces tend to overvalue a currency over time. C) Market forces do not affect exchange rates between different currencies. D) Market forces tend to push the exchange rate of a currency to market clearing levels over time.
The first example used to explain comparative advantage used two countries (England and Portugal) and two goods (wine and cloth) to show that
A) each country would be better off from trade if it had an absolute advantage in producing one of the goods. B) each country would have a comparative advantage in the production of the good for which it had an absolute advantage. C) mutually beneficial trade was possible between two countries even if one had a comparative advantage in the production of both goods. D) mutually beneficial trade was possible between two countries even if one had an absolute advantage in the production of both goods.
The relationship between consumer spending and disposable income is called the
a. conjunction function. b. consumption function. c. aggregate demand function. d. marginal spending function.
Internal production and market purchases are alternative ways of organizing transactions
Indicate whether the statement is true or false