Everything else held constant, an increase in the required reserve ratio on checkable deposits will cause
A) the money supply to rise.
B) the money supply to remain constant.
C) the money supply to fall.
D) checkable deposits to rise.
C
You might also like to view...
What is the most common reason people demand money?
A) Each bill and coin is a reflection of important people and events in a nation's history. B) Since very few of us engage in a flow of transactions, money is our financial safety net. C) People desire to use money as a medium of exchange when they buy goods and services. D) They demand money to ensure that the nation's government will not spend too much.
If the Federal Reserve raises the discount rate, banks will be inclined to borrow additional reserves and the money supply will increase
Indicate whether the statement is true or false
The price elasticity of demand for widgets at any particular price is determined by
A. whether widgets are luxuries or necessities. B. how much of their budgets do consumers spend on widgets. C. whether there are any good substitutes for widgets. D. All of the responses are correct.
In the textbook model of endogenous growth, the production function is modeled as
A) Y = AK. B) Y = C + I + G + NX. C) Y = X. D) Y = S - I.