Author Question: Suppose you bank at Bank A and you write a check to your friend, who banks at Bank B. After the ... (Read 89 times)

Tazate · **on:** Jun 30, 2018

Suppose you bank at Bank A and you write a check to your friend, who banks at Bank B. After the check clears, _____.
a. both Bank A's and Bank B's assets increase
b. both Bank A's and Bank B's assets decrease
c. Bank A's assets increase and Bank B's assets decrease
d. Bank A's assets decrease and Bank B's assets increase
e. there is an increase in the Federal Reserve's assets

Question 2

Which of the following is true of government purchases?
a. They are positively related to current income.
b. They are negatively related to current income.
c. They are directly related to taxes.
d. They are decided by public officials.
e. They depend on the market rate of interest.