When the Fed decreases the required reserve ratio, then the:
a. ability of banks to make loans is restricted.
b. ability of banks to make loans is enhanced.
c. ability of banks to make loans is unaffected.
d. interest rate that banks pay to the Fed to borrow money is reduced.
e. interest rate that banks pay other banks to borrow money is decreased.
b
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A perfectly competitive firm shuts down if the price of its product is
A) greater than its minimum average variable cost. B) less than its minimum average variable cost. C) greater than its maximum variable cost. D) less than its minimum total cost.
During the Chinese experience with pegging the yuan to the dollar, the yuan was ________. As a result, there was a ________ of dollars on the market, and the Chinese government had to purchase dollars to maintain the peg
A) undervalued; shortage B) undervalued; surplus C) overvalued; shortage D) overvalued; surplus
Payroll tax is a proportional tax
a. True b. False Indicate whether the statement is true or false
Economists generally agree that the most important tax in the U.S. economy is the
a. investment tax. b. sales tax. c. property tax. d. labor tax.