If the reserve ratio is 15 percent, and banks do not hold excess reserves, and people hold only deposits and no currency, then when the Fed sells $25.5 million worth of bonds to the public, bank reserves
a. increase by $25.5 million and the money supply eventually increases by $382.5 million.
b. increase by $25.5 million and the money supply eventually increases by $170 million.
c. decrease by $25.5 million and the money supply eventually decreases by $382.5 million.
d. decrease by $25.5 million and the money supply eventually decreases by $170 million.
d
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In the foreign exchange market, what factor leads to a movement along the demand curve for dollars?
What will be an ideal response?
For the monopolistically competitive firm, the demand curve it faces will be steeper the:
A. more easily the good can be substituted. B. less easily the good can be substituted. C. more complement goods are available. D. less complement goods are available.
If net exports decrease, the expenditure schedule will
a. get steeper. b. get flatter. c. shift upward. d. shift downward.
Logrolling refers to the
A) exchange of political favors by corporations. B) need for the president to veto an entire bill when only certain parts of the bill are objectionable. C) exchange of votes to gain support for legislation. D) a and b E) none of the above