Explain two reasons why the Fed does not have complete control over the level of bank deposits and loans. Explain how a change in either factor affects the deposit expansion process
What will be an ideal response?
The Fed does not completely control the level of bank deposits and loans because banks can hold excess reserves and the public can change its currency holdings. A change in either factor changes the deposit expansion process. An increase in either excess reserves or currency reduces the amount by which deposits and loans are increased.
Economics
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a. a botanical garden b. a public beach c. a congested interstate highway d. a toll bridge e. street lights
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As we move down a linear demand curve, the absolute value of the price elasticity of demand:
A) increases. B) stays the same. C) decreases. D) cannot be determined without more information.
Economics