If banks faced a 100 percent reserve requirement, a $10,000 reduction in banking reserves would decrease the money supply by:
a. $1,000,000.
b. $100,000
c. $10,000.
d. $1,000.
c
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In defining development to include more than just the growth of per capita income, there is an implicit assumption that the growth of per capita income alone is not sufficient to guarantee the reduction of poverty and the growth of self-esteem
Is it possible that there could be growth of per capita income without the achievement of these other objectives?
Draw a long-run average cost curve that first exhibits increasing returns to scale (economies of scale), then constant returns to scale, and finally decreasing returns to scale (diseconomies of scale). Label each region.
What will be an ideal response?
Figure 1A.1Refer to Figure 1A.1. The slope of the line between the points where income equals 50 and income equals 200 is:
A. 0.2. B. 5. C. 10. D. 50.
Which of the following will shift the supply curve for laptop computers to the left?
A. a reduction of the number of firms that make laptop computers B. development of a cheaper microchip used in laptop computer production C. a subsidy to the laptop computer industry D. expectations of a future decline in laptop computer prices