When the required reserve ratio is lowered,
a. the money multiplier increases, and the amount of excess reserves increases in the banking system.
b. the money multiplier decreases, and the amount of excess reserves increases in the banking system.
c. the money multiplier decreases, and the amount of excess reserves decreases in the banking system.
d. the money multiplier increases, and the amount of excess reserves decreases in the banking system.
e. there is no change in either the money multiplier or the amount of excess reserves in the banking system.
a
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Ignoring any supply-side effects, if government expenditure on goods and services decrease by $10 billion and taxes decrease by $10 billion, then real GDP ________ and the price level ________
A) increases; falls B) decreases; falls C) does not change; does not change D) increases; rises E) decreases; rises
Which of the following is NOT a reason why collusion may be hard to sustain?
A. Firms observe their rivals' prices only imperfectly. B. Marginal costs, and therefore agreed-upon prices, may differ among firms or products. C. Prices wars in practice may not conform to the predictions of the Bertrand model. D. The potential profits from collusion can be so high as to create an incentive not to undercut.
At what quantity is Jim's Production indifferent between two technologies?
a. 5000 b. 7500 c. 10000 d. 12500
The Council of Economic Advisers
a. was created in 1946. b. advises the president of the United States on economic policy matters. c. writes the annual Economic Report of the President. d. All of the above are correct.