When a bank makes loans with excess reserves, it
a. creates money.
b. destroys money.
c. alters the composition of M1.
d. leaves the money supply unchanged.
a
Economics
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When the AE line lies above the 45° line,
A) real GDP exceeds aggregate planned expenditure. B) there are unplanned increases in inventories. C) aggregate planned expenditure is less than real GDP. D) the price level is rising. E) there are unplanned decreases in inventories.
Economics
If a country removes a tariff on imported shoes, we expect the domestic price of shoes to _______ and the quantity of shoes consumed in the domestic market to ________ .
A) fall; fall B) fall; rise C) rise; fall D) rise; rise
Economics