What limits the quantity of money that the banking system can create?
What will be an ideal response?
The quantity of money that the banking system can create is limited by: the monetary base, desired reserves, and desired currency holdings.
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When an economy experiences a recession there is
A) a rightward shift of the short-run Phillips curve. B) a leftward shift of the short-run Phillips curve. C) no change in the short-run Phillips curve. D) a downward movement along the short-run Phillips curve. E) an upward movement along the short-run Phillips curve.
Suppose a family from Peru eats in a restaurant in Salt Lake City, Utah. How will this transaction be recorded in U.S. international transactions?
A. It is recorded in the current account as a positive (plus) item. B. It is recorded in the current account as a negative (minus) item. C. It is recorded in the capital account as a positive item. D. It is recorded in the current account as a negative item.