How much does the money supply change if the reserve requirement rate is 20% and excess reserves are $5 million?
a. $50 million
b. $1 million
c. $10 million
d. $25 million
d. $25 million
You might also like to view...
The intuition behind the budget constraint is that
A) more options are preferred to less. B) money is the root of all happiness. C) information is power. D) scarcity is avoidable with prosperity.
International trade under a floating exchange rate system
A. has been trouble-free owing to the stabilizing role of speculators in the currency markets. B. has suffered from so many problems that the volume of trade has declined significantly. C. exposes businesses to unavoidable risks when exchange rates change. D. has been subject to wild runs on currencies that were on the verge of devaluation.
If macaroni and cheese is an inferior good, what would happen to the equilibrium price and quantity of macaroni and cheese if consumers' incomes rise?
a. Both the equilibrium price and quantity would increase. b. Both the equilibrium price and quantity would decrease. c. The equilibrium price would increase, and the equilibrium quantity would decrease. d. The equilibrium price would decrease, and the equilibrium quantity would increase.
The lack of investment in developing countries is at least in part attributable to:
A. high levels of foreign aid. B. low levels of domestic savings. C. inappropriate education. D. overpopulation.