If you deposit $100 of currency into a demand deposit at a bank, this action by itself
a. does not change the money supply.
b. increases the money supply.
c. decreases the money supply.
d. has an indeterminate effect on the money supply.
a
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Why would an economist claim that "oil comes out of our minds"?
A) She wants to sound silly. B) She wants to tell lies. C) She wants to remind us that the recognition of useful resources is a product of our mental abilities. D) She wants to sound like a really big and important theorist and could not care less about the facts of the real world.
In the above figure suppose there is only one milk producer who chooses to restrict milk production to two million gallons per day
What is the size of the deadweight loss? (Hint: It is equal to the triangular area of consumer and producer surplus that is lost because of the reduction in output.) A) $12.5 million B) $6.25 million C) $2.25 million D) none of the above