Suppose that last year $30 billion in new loans were extended by banks while $50 billion in

Question:

Suppose that last year $30 billion in new loans were extended by banks while $50 billion in old loans were paid off by borrowers.

What happened to the money supply?

a. Increased.

b. Decreased.

c. Stayed the same.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Macroeconomics

ISBN: 9781264112456

22nd Edition

Authors: Campbell McConnell, Stanley Brue, Sean Flynn

See More Books

Question Posted: Mar 02, 2024 01:00 PM

See More Questions

The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
1. Which type contains a single character enclosed within single quotes? A. Character B. Numeric C. Floating point 2. The modulus operator uses, B. - B. < A. + 3. Every variable should be separated...
Indicate where the following items would ordinarily appear on the financial statements of Boleyn, plc for the year 2019. a. The service life of certain equipment was changed from 8 to 5 years. If a...
On the first day of the fiscal year, a company issues an $5,300,000, 8%, five-year bond that pays semiannual interest of $212,000 ($5,300,000 8% ), receiving cash of $5,520,390. Journalize the bond...
Figure 11.64 presents the PFD of a process for the production of organic fibers (Smith, 2005). In the process, the organic solvent is removed from the fibers in dryer D-100 using circulated warmed...
Three hundred gallons of a mixture containing 75.0 wt% ethanol (ethyl alcohol) and 25% water (mixture specific gravity = 0.877) and a quantity of a 40.0 wt% ethanol60% water mixture (SG = 0.952) are...
You have been offered a job by the Boulder Dry Company . The director of HR has asked you to singe a two page contract . What provisions seen totally unrelated to the main purpose?
What are the two parts of the Feds dual mandate? How does the dual mandate relate to the bullseye chart? Which quadrants of the bullseye chart give conflicting signals to the Fed and what is the...
Suppose that the Fed has set the reserve ratio at 10 percent and that banks collectively have $2 billion in excess reserves. What is the maximum amount of new checkable-deposit money that can be...
What are the reasons why an FI may prefer the use of either pass-through securities or CMOs to the use of MBBs?
Boeing Memo | Draft due Wednesday, Sept 21, 11:45pm Read "Boeing 737 Max 8-A Stalled Communication Take-off?" It is late October 2019. The Boeing Board has just stripped Muilenburg of his role as...
Explain 4 factors influencing the national advantages and provide examples for each in case of Indonesia.
Consider an academic building with three lecture halls. The maximum capacity of each hall is 200 occupants. In each hall, there are 40 units of 10W lamps being used continuously due to poor natural...
What's the role of business in society? Reflect the responsibilities this place on Managers, employees and customer?
The question is: A. In worksheet Ex 1of the Excel file provided, model a two-asset portfolio and examine the risk and return characteristic of a two-asset portfolio - using the data provided. In this...
What accounts are affected when bonds are issued at face value?
a. Show that the expansion of q(x) in ascending powers of x can be approximated to 10 2x + Bx 2 + Cx 3 where B and C are constants to be found. b. Find the percentage error made in using the series...
If the CPI was 110 last year and is 121 this year, what is this years rate of inflation? In contrast, suppose that the CPI was 110 last year and is 108 this year. What is this years rate of...
If the CPI was 110 last year and is 121 this year, what is this years rate of inflation? In contrast, suppose that the CPI was 110 last year and is 108 this year. What is this years rate of...
Suppose that the natural rate of unemployment in a particular year is 5 percent and the actual rate of unemployment is 9 percent. Use Okuns law to determine the size of the GDP gap in...
Suppose a company had $11.2m in sales during the 2018 fiscal year. Its costs of sales during FYear 2018 was $6.45m. And its selling, general, and administrative expenses were $1.45m. What was the...
what ways can team composition and diversity influence team performance and creativity, and what are the challenges and opportunities associated with managing diverse perspectives and backgrounds...
Sheetal is a sole proprietor who has some outstanding receivables to sell. The receivables have a $16,000 FMV and a basis of $10,000. Sheetal sells the receivables for $12,500. What gain or loss is...

Suppose that last year $30 billion in new loans were extended by banks while $50 billion in

Question:

Step by Step Answer:

When new loans are extended by banks it injects mo...View the full answer

Macroeconomics

Students also viewed these Business questions