When a bank loan is repaid, the supply of money:
A. is constant, but its composition will have changed.
B. is decreased.
C. may either increase or decrease.
D. is increased.
Answer: B
Economics
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When households choose to hold money as a store of value, rather than holding assets such as certificates of deposit, stocks, and bonds, ________ demand for money results
A) liquidity B) asset C) transactions D) precautionary
Economics
According to the policy irrelevance proposition, real Gross Domestic Product (GDP) is determined by
A) the economy's long-run aggregate supply curve. B) a combination of fiscal policy and monetary policy. C) the rate of inflation only. D) the economy's aggregate demand curve.
Economics