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

question 201

Multiple Choice

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

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

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Definitions:

Marginal Product

The additional output a firm produces as a result of hiring one more unit of input, such as labor or capital, holding all other factors constant.

Marginal Product

The additional output that results from using one more unit of a factor of production, keeping other factors constant.

Opportunity Cost

The value of the best alternative foregone as a result of making a decision.

Sports Physicals

Medical examinations undertaken by athletes to assess their health and fitness levels before participating in sports activities.