1. If the U.S. Treasury deposits income tax receipts into its account at the Federal Reserve, then the money multiplier will decrease the money multiplier will increase the monetary base will decrease the monetary base will increase Which of the following is part of M2? a Small time deposits b Money market mutual funds c Currency held by foreigners d All of the above

ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter14: Banking And The Money Supply
Section: Chapter Questions
Problem 3.5P
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1.
If the U.S. Treasury deposits income tax receipts into its account at the Federal Reserve, then
the money multiplier will
decrease
the money multiplier will
increase
the monetary base will
decrease
the monetary base will
increase
Which of the following is part of
M2?
a Small time deposits
b Money market mutual
funds
c Currency held by
foreigners
d All of the above
Transcribed Image Text:1. If the U.S. Treasury deposits income tax receipts into its account at the Federal Reserve, then the money multiplier will decrease the money multiplier will increase the monetary base will decrease the monetary base will increase Which of the following is part of M2? a Small time deposits b Money market mutual funds c Currency held by foreigners d All of the above
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