An assumption in the model of the money supply process is that the desired levels of currency and excess reserves
A) are given as constants.
B) grow proportionally with checkable deposits.
C) grow proportionally with high-powered money.
D) grow proportionally over time.
B
Economics
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An increase in wages will shift the supply curve up and to the left
Indicate whether the statement is true or false
Economics
The desired reserve ratio is 10 percent. Fly By Night Bank has deposits of $250,000 and reserves of $25,000. What is the amount of its excess reserves?
What will be an ideal response?
Economics