If the required reserve ratio decreases, the:
a. money multiplier increases.
b. money multiplier decreases.
c. amount of excess reserves the bank has decreases.
d. money multiplier stays the same.
a
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The predictions of marginal utility theory
A) contradict the idea that the demand curve slopes downward. B) support the idea that the demand curve slopes downward. C) support the idea that the supply curve slopes upward. D) contradict the idea that the supply curve slopes upward.
Using a broad definition, a firm would have a monopoly if
A) it produced a product that has no close substitutes. B) it does not have to collude with any other producer to earn an economic profit. C) it can make decisions regarding price and output without violating antitrust laws. D) there is no other firm selling a substitute for its product close enough that its economic profits are competed away in the long run.
Lowering the legal reserve requirement might not result in an increase in the money supply if
a. tax rates are also lowered at the same time b. tax rates are increased at the same time c. borrowers are unwilling to borrow the new funds the banks have available for loans d. borrowers are willing to borrow the new funds the banks have available for loans e. borrowers expand their borrowing because of the lower interest rates that banks offer
One major barrier to entry under pure monopoly arises from:
A. diseconomies of scale. B. the availability of close substitutes for a product. C. the price taking ability of the firm. D. ownership of essential resources.