When the quantity of money demanded is greater than the quantity of money supplied, people ________ bonds and the interest rate ________

The assumption that X has full column rank implies that

A) the number of observations equals the number of regressors. B) binary variables are absent from the list of regressors. C) there is no perfect multicollinearity. D) none of the regressors appear in natural logarithm form.

If people choose to hold some of a newly received loan as cash instead of keeping it in a checking account, _____

a. the money supply will not increase as much as it would had borrowers deposited all of the money b. the money supply will remain unchanged c. the money supply will decrease as much as it would had borrowers deposited all the money d. the banking system will collapse e. the economy will experience a recession