For a given level of reserves, an increase in the reserve requirement ratio will
A) decrease legal reserves and decrease the money supply.
B) increase legal reserves and decrease excess reserves.
C) increase legal reserves and increase excess reserves.
D) increase excess reserves and increase the money supply.
Ans: B) increase legal reserves and decrease excess reserves.
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In the short-run:
a. All costs are variable b. Some costs are fixed and some costs are variable c. There are no fixed inputs d. The firm is not constrained to vary output
A market failure is defined as
A.) Optimal outcomes B.) Suboptimal outcomes C.) Ample quantities of goods and services D.) All of the above
Briefly explain and provide an example of how marginal willingness to pay relates to consumer surplus
What will be an ideal response?
A firm will use land up to the point at which the MRP of land is equal to the price of land.
Answer the following statement true (T) or false (F)