Suppose the banks in the Federal Reserve System have $100 million in transactions accounts and the reserve requirement is 0.10. Ceteris paribus, if the reserve requirement is decreased to 0.07, then excess reserves will increase by:
A. $3 million.
B. $7 million.
C. $10 million.
D. $700 billion.
A. $3 million.
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Aggregate measures are
A) anything to do with economics. B) a total measure of a variable across the economy. C) used only in microeconomics. D) determined by the Bureau of Labor Statistics.
Technological progress increases the efficiency of mass producing HDTV-capable television sets. At the same time, more cable and television networks begin broadcasting in HDTV format, increasing the appeal of HDTV-capable television sets. On the basis of this information, what can be said about conditions in the HDTV market? a. The equilibrium quantity and price of HDTV-capable sets will
increase. b. The equilibrium quantity of HDTV-capable sets will increase and price will decrease. c. The equilibrium quantity of HDTV-capable sets will increase and what happens to price is indeterminate. d. The equilibrium quantity of HDTV-capable sets will decrease and price will increase.
The Federal Reserve Banking Act of 1978
a. attempted to guarantee stability of the banking system b. was a reaction to the savings and loan crisis c. added full employment to the list of objectives for the Fed d. strengthened deposit insurance programs e. pledged the Fed to keep the inflation rate low
Resources are allocated most efficiently across the country and around the world when traders specialize in producing those goods for which they have a comparative advantage, and trade for the other things that they need
Indicate whether the statement is true or false