When the Fed extends a $100 discount loan to the First National Bank, reserves in the banking system
A) increase by $100.
B) increase by more than $100.
C) decrease by $100.
D) decrease by more than $100.
A
Economics
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Other things being equal, the quantity theory of money suggests that any increase in the money supply
A) results in a decrease in the aggregate price level. B) causes the aggregate level of nominal Gross Domestic Product (GDP) to fall. C) causes a reduction in the demand for money. D) results in a proportionate increase in the price level.
Economics
When a positive externality is present
A) the market price is too low. B) the market price is too high. C) the market price is in equilibrium. D) none of these choices.
Economics