If the required reserve ratio were decreased,
a. the money supply would tend to decrease, but the outstanding loans of banks would tend to increase.
b. both the money supply and the outstanding loans of banks would tend to decrease.
c. the money supply would tend to increase, but the outstanding loans of banks would tend to decrease.
d. both the money supply and the outstanding loans of banks would tend to increase.
D
You might also like to view...
A variable factor of production:
A. is fixed in the long run but variable in the short run. B. is variable in both the short run and the long run. C. plays no role in the law of diminishing marginal returns. D. is variable only in the short run.
Which theory of economic growth concludes that in the long run real GDP per person will be at its subsistence level?
A) the classical theory B) the neoclassical theory C) the new growth theory D) all of the theories
Suppose that you allow yourself $50 per month to spend on compact disks. You spend exactly this much every month regardless of the price of compact disks. Therefore, your demand for CDs
a. is elastic b. is inelastic c. is unit elastic d. cannot be characterized unless we know the price of a disk e. cannot be characterized unless we know the price and quantity of compact disks purchased
Which of the following statements about exchange is false?
a. The expectation of gain motivates people to engage in trade. b. If a party to a potential exchange does not believe that it will lead to personal gain, he or she can chose not to engage in the trade. c. Voluntary exchange is generally mutually beneficial to the trading partners. d. If one trading partner gains, the other must lose.