When a commercial bank lends $1000 to a customer, and the loan proceeds are spent by the customer, the legal reserves of the banking system
A) decline by $1000.
B) do not change unless the loan proceeds are withdrawn in currency.
C) rise by $1000.
D) rise by more than $1000 because spending increases nominal GDP.
B
Economics
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Economic models have become much simpler in recent years
Indicate whether the statement is true or false
Economics
Which of the following is accurate regarding government expenditures in the United States?
a. The federal government spends considerably more than state and local governments combined. b. The federal government spends more than local governments but less than state governments. c. Local governments spend more than state governments, which in turn, spend more than the federal government. d. Since 1930, total government expenditures as a share of GDP have declined.
Economics