An increase in the reserve ratio would tend to
a. increase excess reserves and raise the money multiplier.
b. decrease excess reserves and decrease the money multiplier.
c. increase excess reserves and decrease the money multiplier.
d. decrease excess reserves and raise the money multiplier.
b
You might also like to view...
Refer to the scenario above. Suppose the decision to levy a tax on emission of greenhouse gases costs 500 utils in present value and that the discount weight attached to the future benefit is 1/17
In this case, the net benefit earned by the people is: A) -300 utils. B) -441.18 utils. C) 333.65 utils. D) 420 utils.
High unemployment is undesirable because it
A) results in a loss of output. B) always increases inflation. C) always increases interest rates. D) reduces idle resources.
Which of the following is an example of a trade restriction?
A) quotas B) tariffs C) dumping D) a and b E) a, b, and c
Which of the following scenarios fits these two graphs?
a. A farm continues to earn a profit as the market supply decreases, causing the market price to increase.
b. A farm’s economic profits return to zero as the market supply increases, causing the market price to decrease.
c. A farm’s profit plunges to a loss as the market supply decreases, causing the market price to increase.
d. A farm earns excess profits as the market supply increases, causing the market price to decrease.