There is a potential for banks to create money when they

A) lend out their excess reserves.
B) fail to lend out their excess reserves.
C) hold more of their customer deposits as vault cash.
D) hold all of their customer deposits as vault cash.

A

Economics

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Following a decrease in government spending, as the price level falls we would expect the level of interest rates to ________ and investment to ________

A) decrease; increase B) increase; decrease C) decrease; decrease D) increase; increase

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