An increase in the legal reserve ratio:
A. increases the money supply by increasing excess reserves and increasing the monetary
multiplier.
B. decreases the money supply by decreasing excess reserves and decreasing the monetary
multiplier.
C. increases the money supply by decreasing excess reserves and decreasing the monetary
multiplier.
D. decreases the money supply by increasing excess reserves and decreasing the monetary
multiplier.
B. decreases the money supply by decreasing excess reserves and decreasing the monetary
multiplier.
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What are the factors that favor high incentive pay for an employee? Explain which of the five factors is the most important.
What will be an ideal response?
Pure private goods are nonrival in consumption.
A. True B. False C. Uncertain
An increase in the supply of gasoline, ceteris paribus, will cause equilibrium price
A. To fall and equilibrium quantity to rise. B. And equilibrium quantity to fall. C. To rise and equilibrium quantity to fall. D. And equilibrium quantity to rise.
Economies of scale can lead to an oligopolistic market structure because
A) if larger firms have lower costs, new small entrants will not be able to produce at the low costs achieved by the big established firms. B) if economies of scale are insignificant, only a few firms are able to produce at the low costs achieved by the big established firms. C) a few firms can force rivals to produce at low levels of output. D) a few firms can use high profits to keep out new entrants.