A decrease in the required reserve ratio will increase banks' excess reserves and decrease the money multiplier
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
In the above figure, if the demand curve is D2, then
A) the equilibrium price will be P1 and the equilibrium quantity will be Q2. B) the equilibrium price will be P1 and the equilibrium quantity will be Q1. C) there will be a shortage equal to Q2 - Q1. D) an increase in price will shift the demand curve to D3.
A minimum wage set above the market equilibrium wage rate ______
A. increases both employment and the quantity of labor supplied B. decreases unemployment and raises the wage rate of those employed C. raises the wage rate of those employed and increases the supply of jobs D. increases unemployment and decreases employment
Refer to Figure 27-1. Suppose the economy is in short-run equilibrium above potential GDP and no policy is pursued. Using the static AD-AS model in the figure above, this would be depicted as a movement from
A) D to C. B) C to D. C) E to A. D) C to B. E) A to E.
One way a government might protect monopoly rights is by:
A. heavily taxing alcohol and cigarettes. B. granting a patent. C. running unsubsidized state-owned enterprises that compete with private firms. D. All of these are ways the government protects monopoly rights.