If banks cannot lend all of their excess reserves:
a. the money multiplier increases.
b. the money multiplier decreases.
c. the money multiplier stays the same.
d. the amount of loans by the bank increases.
e. checkable deposits decrease.
b
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If the San Diego Opera decreases the price of their opera tickets and their total revenue falls, then this suggests that, at the original price, the demand for tickets to the San Diego Opera was:
A. elastic. B. unit elastic. C. inelastic. D. either elastic or inelastic.
Under a flexible exchange rate system an increase in the value of a currency relative to other currencies is a called a ________ and under a fixed exchange rate system an increase in the official value of a currency is called a ________.
A. depreciation; devaluation B. depreciation; appreciation C. appreciation; revaluation D. revaluation; appreciation
In the United States for the last 40 years, the nominal interest rate
A) and the real interest rate both decreased in almost every year. B) and the real interest rate were both constant in almost every year. C) was constant in most years and the real interest rate fluctuated. D) exceeded the real interest rate in virtually all the years. E) exceeded the real interest rate in about one half of the years and the real interest rate was greater than the nominal interest rate in the other half of the years.
Answer the following statements true (T) or false (F)
1. In perfect competition, if the market price is at the same level as the minimum point of the firm’s average total cost curve, the best the firm can hope for is to break even. 2. If new firms enter a perfectly competitive industry, the market price of the finished product will rise. 3. An increase in market demand for a product can raise the MR for a firm in perfect competition. 4. Under perfect competition in the short run, profits among firms can differ if some firms use their resources more efficiently. 5. Since all producers have the same average revenue under conditions of perfect competition, they all have the same profits in the short run.