Everything else held constant, an increase in the excess reserves ratio causes the M1 money multiplier to ________ and the money supply to ________
A) decrease; increase
B) increase; increase
C) decrease; decrease
D) increase; decrease
C
You might also like to view...
If a 2 percent rise in price leads to a 4 percent decrease in quantity demanded, then demand is
A) elastic and total revenue decreases. B) elastic and total revenue increases. C) inelastic and total revenue decreases. D) elastic, but we cannot tell what happens to total revenue without more information. E) Total revenue decreases but we cannot tell if the demand is elastic or inelastic without more information.
Why do individuals demand health insurance? Does the health insurance provided through most employers more or less than people would get if purchased on their own? Why
What will be an ideal response?
In the antebellum period, most large manufacturers relied on the _____________ for power
a. undershot water wheel b. overshot water wheel c. breast water wheel d. water turbine
The differing elasticities of the supply and demand curves for labor mean that the burden of the payroll tax is placed mostly on ______.
a. investors b. government c. firms d. workers