If People Decide to Transfer Their Currency into Their Bank

question 9

Multiple Choice

If people decide to transfer their currency into their bank deposits then, all else constant, their decisions will

• A)cause the quantity of money to decrease.
• B)cause lower inflation.
• C)cause higher real interest rates.
• D)cause the quantity of money to increase immediately.
• E)increase the actual reserves of banks.

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Definitions:

Unconscious

The part of the mind that contains thoughts, memories, and desires not within the immediate awareness of the individual.

Freud's Personality Model

A theory suggesting personality is composed of the id, ego, and superego, balancing basic desires, realistic decisions, and moral constraints, respectively.

Ego

A component of the psyche associated with self-perception, self-esteem, and the management of personal identity.

Superego

The component of Freud's psychoanalytic theory acting as the moral compass or conscience within the personality.