The money supply would tend to fall if:
a. banks decide to keep more excess reserves and people convert more of their demand deposits to currency.
b. banks decide to keep more excess reserves and people deposit currency in their demand deposit accounts.
c. banks decide to keep fewer excess reserves and people deposit currency in their demand deposit accounts.
d. banks decide to keep fewer excess reserves and people convert more of their demand deposits to currency.
a
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The production function Q = 0.8X + 0.6Y exhibits
A) increasing return to scale. B) decreasing returns to scale. C) constant returns to scale. D) economies of scale.
Which of the following is true of fiscal policy before the Great Depression of the 1930s?
a. Fiscal policy was made at the federal level. b. Policies associated with national defense were made at the state level. c. Environmental degradation and education were the focus areas of the federal government while other areas of government policy were dealt by individual states. d. The federal budget was determined mostly by economists and not by politicians. e. National defense and foreign trade were the focus areas of the federal government while other areas of government policy were dealt by individual states.