If You Deposit $1,000 in Cash in Your Checkable Deposit

question 95

Multiple Choice

If you deposit $1,000 in cash in your checkable deposit at your bank, the quantity of M1 immediately

• A)decreases by $1,000.
• B)changes, but more information about the required reserve ratio is necessary to determine the amount of the change.
• C)increases by $2,000.
• D)does not change in size.
• E)increases by $1,000.

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Definitions:

Labor Surplus

A labor surplus occurs when there are more workers available than jobs, leading to unemployment and underemployment.

Hiring Freeze

A temporary halt in the recruitment process of an organization aimed at reducing costs.

Pay Reduction

A decrease in the amount of money an employee is paid, often as a result of economic difficulties, performance issues, or restructuring within an organization.

Trend Analysis

The practice of collecting information and attempting to spot a pattern.