Which of the following will limit the expansion of the money supply following a new deposit?
A) a re-depositing of all loan proceeds
B) a strong demand for holding currency outside of commercial banks
C) a strong demand for new loans
D) failure of banks to voluntarily hold excess reserves
B
Economics
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A production possibilities curve determines the price at which goods trade
Indicate whether the statement is true or false
Economics
Last year, an economy produced 2400 bananas, 3000 satsumas and 2500 peaches. The price of bananas was €0.50, the price of satsumas was €0.60 and the price of peaches was €0.50. Nominal GDP was:
(a) € 5200. (b) € 6600. (c) € 4250. (d) Cannot be computed.
Economics