State whether each of the following statements is true or false.Briefly explain your answers.
(A)The larger the fraction of any deposit a bank can lend out,the smaller the money multiplier.
(B)The Federal Reserve increases reserves by buying government bonds.
(C)It is possible for one type of money to be a unit of account and another type of money to be a medium of exchange.
(D)When commodity money is the only type of money,there can never be inflation.

Question

Quizplus · Accepted Answer

The Answer of State whether each of the following statements is true or false.Briefly explain your answers.
(A)The larger the fraction of any deposit a bank can lend out,the smaller the money multiplier.
(B)The Federal Reserve increases reserves by buying government bonds.
(C)It is possible for one type of money to be a unit of account and another type of money to be a medium of exchange.
(D)When commodity money is the only type of money,there can never be inflation.

State Whether Each of the Following Statements Is True or False.Briefly