Given that the Fed currently imposes reserve requirements on checking deposits, but not on savings deposits, why would banks prefer to hold deposits as savings accounts rather than checking accounts, other things equal?
Answer to relevant QuestionsTrue or False:1. A central bank has only one function-controlling the supply of money in a country.2. The central bank typically serves as the major bank for the central government.3. The central bank implements monetary and ...True or False:1. The magnitude of velocity does not depend on the definition of money that is used.2. If the money supply increases and the velocity of money does not change, the result will be higher prices (inflation), ...Multiple Choice Questions:1. If an increase in the growth rate of AD leads to an increase in real GDP in the short run,a. The increase in AD could have been correctly anticipated.b. The increase in AD could have been greater ...If money wages are rising faster than output prices?a. What is happening to real wages?b. What would happen to unemployment as a result?c. What would happen to SRAS as a result?True or False:1. The inverse relationship between the rate of unemployment and the rate of inflation is called the Phillips curve.2. If output prices rise faster than money wages, real wages will fall, as will the ...
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