If people choose to hold some of a newly received loan as cash instead of keeping it in a checking account, _____
a. the money supply will not increase as much as it would had borrowers deposited all of the money
b. the money supply will remain unchanged
c. the money supply will decrease as much as it would had borrowers deposited all the money
d. the banking system will collapse
e. the economy will experience a recession
a
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Which of the following resources will a producer demand another unit of so long as the additional unit's marginal revenue exceeds its marginal cost?
a. labor b. capital c. natural resources d. entrepreneurial ability e. All of the answers are correct.
If consumption expenditures increased by $150 million, while GDP remained the same, which of the following could have occurred, all else equal?
a. Exports increased by $150 million b. Imports decreased by $150 million c. Net exports increased by $150 million d. Net exports decreased by $150 million e. Private investment increased by $150 million