Isabel receives a check for $7,000 from Kermit and deposits it in her bank. Suppose that the reserve ratio is 10 percent. As a result of this transaction the money supply will
A) decrease by $63,000 and then increase by $70,000.
B) increase by $70,000.
C) decrease by $70,000 and then increase by $63,000.
D) not change.
D
Economics
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Refer to Figure 15-11. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, and the Federal Reserve pursues no policy, then at point B
A) incomes and profits are rising. B) the economy is below full employment. C) the unemployment rate is very, very low. D) there is pressure on wages and prices to rise. E) firms are operating above their normal capacity.
Economics
An agreement with another country in which it agrees to import more from the United States is called a
A) VRA. B) VIE. C) VAR. D) VAT.
Economics