When a bank loans out
$1,000, the money supply ____
A: does not change.
B: decreases.
C: increases.
D: may do any of the above.
$1,000, the money supply ____
A: does not change.
B: decreases.
C: increases.
D: may do any of the above.
举一反三
- Inflation occurs when: （ ） A: the stock of goods and services increases and the quantity of money in circulation decreases. B: the money supply decreases and the output increases. C: output increases faster than the money supply. D: the quantity of money in circulation rises faster than the stock of goods and services.
- When a firm sells a product out of inventory, GDP: A: increases. B: decreases. C: is not changed. D: increases or decreases, depending on the year the product was produced.
- When your income increases, A: your budget line shifts rightward and its slope does not change. B: your budget line shifts leftward and its slope does not change. C: the slope of your budget line increases. D: the slope of your budget line decreases.
- When the interest rate falls in the money market, the quantity of money demanded ________ and the quantity of money supplied ________. A: increases; decreases B: decreases; increases C: stays the same; decreases D: increases; stays the same
- When<br/>taxes increase, consumption () A: decreases<br/>as shown by a movement to the left along a given aggregate demand<br/>curve. B: decreases<br/>as shown by shifting aggregate demand to the left. C: increases<br/>as shown by shifting aggregate supply the left. D: None<br/>of the above is correct.