Assuming a reserve requirement of 20 percent, if the Fed sells $20 billion in bonds in the open market, the lending capacity of the system will eventually
A. Increase by $100 billion.
B. Decrease by $100 billion.
C. Decrease by $1 billion.
D. Increase by $1 billion.
Answer: B
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Suppose we want to know how much money your grandparents would have to earn now to have purchasing power equivalent to their income in 1969. We could:
A. translate their nominal income today into 1969 dollars. B. take a ratio of their income today with their income from 1969. C. translate their nominal income in 1969 into constant, real dollars of today. D. None of these statements is true.
Which statement is false?
A. The unemployment rate for blacks has consistently been double that of whites. B. The largest source of income is property income. C. Women have traditionally earned 60% of what men have earned. D. None of these statements are false.
_________is a measure of the way in which a quantity supplied leads to a change in price.
Fill in the blank(s) with the appropriate word(s).
If the demand for reserves is unchanged, an increase in the quantity of reserves will
What will be an ideal response?