"Since checking accounts now pay interest they should not be included in the money supply." Given that checks are the major medium of exchange, this statement is false because
A) checking accounts are primarily used for savings in the current year.
B) the interest rate on checking accounts is lower than on other accounts.
C) the demand for real balances is negatively related to interest rates.
D) money is money.
B
Economics
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If the price level falls by 5 percent and workers' money wage rates remain constant, firms'
A) quantity of labor demanded will decrease. B) quantity of labor demanded will increase. C) supply of jobs will increase. D) None of the above answers are correct.
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The total amount of required reserves in the banking system is equal to the ________ the required reserve ratio and checkable deposits
A) sum of B) difference between C) product of D) ratio between
Economics