In Essence, Which of the Following Groups "Creates" Money

question 30

Multiple Choice

In essence, which of the following groups "creates" money?

• A) Banks' loan officers when they grant loans
• B) Consumers when they go shopping
• C) Depositors when they deposit or withdraw money from their banks
• D) Firms when they pay workers their wages and salaries

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Definitions:

Total Product

The total amount of goods or services produced by a firm or an economy at a given level of resource utilization.

Marginal Product

The additional output generated by employing one more unit of a specific factor of production, holding all other factors constant.

Total Product

The total quantity of output or goods produced by a firm or company using a given quantity of inputs during a specific time period.