Suppose that the interest rate is so low that banks currently refuse to make loans. An increase in the supply of high-powered money will
A) have no effect on the money supply if all the new high-powered money ends up as bank reserves.
B) have no effect on the money supply if all the new high-powered money ends up as cash in the hands of the nonbank public.
C) raise the money supply depending on banks reserve-holding ratio.
D) All of the above are correct.
A
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The burden of a tax is mainly borne by the buyer if:
a. the supply of the good is perfectly price elastic. b. the supply of the good is relatively price elastic. c. the demand for the good is relatively price elastic. d. the demand for the good is relatively price inelastic. e. the demand for the good is perfectly price elastic.
Which of the following factors is projected to be the dominant source of economic growth in the U.S. from now until 2020?
A. Increase in hours per worker B. Increase in labor force C. Increase in population D. Increase in labor productivity