When banks gain ________, they can ________ their loans; and the ...

[luminitza]

When banks gain ________, they can ________ their loans; and the money supply ________.
 
  A) withdrawals; increase; expands B) reserves; increase; expands
  C) withdrawals; decrease; expands D) reserves; increase; contracts

Question 2

An increase in expected inflation will shift the short-run Phillips Curve.
 
  Indicate whether the statement is true or false

[raenoj]

Answer to Question 1

B

Answer to Question 2

TRUE

[luminitza]

Thanks for the timely response, appreciate it

[epscape]

Great answer, keep it coming