If all banks are subject to a uniform 25% reserve requirement and demand deposits are the only form of money, a $1,000 open market sale by the Fed would cause the money supply to

A. increase by $1,000.
B. decrease by $1,000.
C. decrease by $4,000.
D. increase by $4,000.


C. decrease by $4,000.

Economics

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Since the beginning of the 20th century the decade with the slowest real GDP per person growth rate other than the 1930s is ________ because of the ________

A) 2000-2010; 2008/2009 deep recession B) 1930-1940; Great Depression C) 2010-2020; Keynesian economic policies being used more frequently than in the 1930s D) 1990-2000; fear of Y2K E) 2000-2010; the war on terror

Economics

Refer to Scenario 1-1. Using marginal analysis terminology, what is another economic term for the incremental revenue received from the sale of the last 400 t-shirts?

A) sales revenue B) gross earnings C) gross profit D) marginal revenue

Economics

An upturn in business confidence may cause firms to ________ their estimates of MPK, leading to a ________ capital stock that matches MPK to the user cost of capital and thus ________ of net investment

A) lower, larger, a contraction B) lower, larger, an expansion C) lower, smaller, a contraction D) raise, smaller, a contraction E) raise, larger, an expansion

Economics

Compared with a perfectly competitive market with similar cost conditions, a monopolist will have:

a. a higher output and a lower price. b. a lower output and a lower price. c. a higher output and a lower price. d. a lower output and a higher price. e. equal output and a higher price.

Economics