When the required reserve ratio is changed,
A. the money multiplier is changed but the amount of excess reserves in the banking system is unchanged.
B. the money multiplier is unchanged but the amount of excess reserves in the banking system is changed.
C. the size of the money multiplier and the amount of excess reserves change in the opposite direction from the required reserve ratio.
D. the size of the money multiplier and the amount of excess reserves change in the same direction as the required reserve ratio.
Answer: C
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Refer to Table 4-5. The table above lists the highest prices five consumers are willing to pay for a concert ticket. If the price of one ticket falls from $50 to $20
A) only three tickets will be sold. B) everyone will buy a ticket. C) consumer surplus decreases from $48 to $24. D) consumer surplus increases from $0 to $62.
The worth of __________ tend(s) to be undervalued in our society
a. Internal exchanges b. Abundance c. Scarcity and risk d. Tangible goods
The asset demand for money is
A) greater at high interest rates as investors can earn more on their investments. B) greater at low interest rates, because the opportunity cost of holding money is low. C) greater at low interest rates, because the opportunity cost of holding money is high. D) lower at low interest rates, because the opportunity cost of holding money is high.
The economy's natural rate of unemployment consists of:
a. structural plus frictional unemployment. b. cyclical plus frictional unemployment. c. structural plus cyclical unemployment. d. structural, frictional, and cyclical unemployment.