179.The primary source of earnings of commercial banks is income derived froma. the checking account services provided to customers.b. the use of deposits to extend loans and undertake investments.c. services provided to the U.S. Treasury.d. vault cash and deposits held with the Fed.180.When the Fed lowers the discount rate, it makes it181.Which of the following will increase interest rates in the short run?182.Given the strict quantity theory of money, if the quantity of money were decreased by 50 percent, prices would183.In the aggregate demand-aggregate supply model, the short-run effects of an unanticipated decrease in the money supply will bea. higher real interest rates and a reduction in aggregate demand.b. higher real interest rates and an increase in aggregate demand.c. lower real interest rates and an increase in aggregate demand.d. lower real interest rates and a reduction in aggregate demand.184.When the Fed decreases the money supply, what will happen to nominal interest rates?