The fall in the money multiplier and money supply during the Great Depression
a. suggests that the public but not banks can be a major participant in the money supply process.
b. implies that banks but not the public can be a major participant in the money supply process.
c. means that neither the banks nor the public were involved in the money supply process.
d. illustrates that both the public and banks can be major players in the money supply process.
D
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If people suddenly anticipate that inflation will rise during the next year, which of the following is most likely?
a. Nominal interest rates will rise. b. Nominal interest rates will decline. c. The demand for goods and services will decline. d. Both the real and nominal interest rates will decline.
Matt fishes for tuna at a cost of $4 per ton. John fishes at a cost of $6 per ton. Each has a 1000 ITQ. The current market price is $8 per ton. What amount could Matt pay John to induce him to sell his ITQ?
A. $1000 B. $2000 C. $3000 D. It would not be profitable for Matt to buy John's ITQ