If the total amount of demand deposits in the country increases by $12,000 after the Fed purchases $6,000 in bonds, what is the required reserve ratio?
a. 0.4
b. 0.1
c. 0.2
d. 0.5
e. 0.3
D
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Assume an economy with a single bank, no excess reserves, no savings accounts, and no currency held by the public. With a required reserve ratio of .4, the demand deposit expansion multiplier is
A) 20. B) 10. C) 4. D) 2.5.
The demand for labor is a derived demand
a. True b. False Indicate whether the statement is true or false
The Federal Reserve wants to reduce the nation's money supply. This could be accomplished by doing all of the following EXCEPT
A. decreasing the discount rate. B. increasing the reserve requirement. C. selling securities on the open market. D. making banks hold a reserve for all types of deposits.
For a perfectly competitive firm, the profit-maximizing output level occurs where marginal cost equals price.
Answer the following statement true (T) or false (F)