Why would it be correct to say that, if we assume that people do not change their currency holdings and that banks do not hold any excess reserves, the equation ?D = 
?RR really could be stated as ?M1 = 
?RR ?
What will be an ideal response?
M1 consists of public (non-bank) currency and checkable deposits (D). Any ?M1 =?C + ?D; Since the ?C = 0; any ?M1 = ?D
You might also like to view...
Refer to Table 14-8. If the two firms collude, is there an incentive for either to cheat on the collusion agreement?
A) Yes, but only Brawny Juice is in a position to gain by cheating. B) Yes, but only Power Fuel is in a position to gain by cheating. C) Yes, either firm can gain if it, alone, cheats. D) No, neither firm can gain by cheating.
The marginal revenue product of labor is the:
A. change in labor necessary to produce an additional unit of output. B. cost of additional labor necessary to produce an additional unit of output. C. change in output resulting from adding an additional unit of labor. D. change in revenue resulting from adding an additional unit of labor.