Suppose a bank has $100,000 in checking account deposits with no excess reserves and the required reserve ratio is 10 percent. If the Federal Reserve raises the required reserve ratio to 12 percent, then the bank will now have excess reserves of
A) $12,000. B) $0. C) -$2,000. D) -$12,000.
C
Economics
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Which of the following is not a characteristic of cost-push inflation?
A. Falling unemployment B. Falling real output C. Automatically self-limiting D. Rising general price level
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What is the Consumer Price Index (CPI)?
What will be an ideal response?
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"I'm tired of eating muffins for breakfast. Today, I'm trying a bagel." These statements most clearly reflect the:
a. law of increasing returns to scale. b. second law of demand. c. law of diminishing marginal utility. d. law of comparative advantage.
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The ratio of the prices of two goods multiplied by -1 is equal to the slope of the budget line
a. True b. False
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