If the required reserve ratio is 10 percent, $1,000 cash deposited into a checkable deposit account will generate, assuming willing borrowers, an increase in the money supply of:
a. $900.
b. $1,100.
c. $9,000.
d. $10,000.
e. $11,000.
c
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The European Union established a cap-and-trade system which was designed to
A) eliminate air pollution and greenhouse gases by the year 2020. B) reduce carbon dioxide emissions. C) remove all taxes from polluting industries. D) provide fast growing developing countries with the technology to reduce their carbon emissions.
Why is the aggregate demand curve downward sloping while the aggregate expenditure line is upward sloping?
What will be an ideal response?
The excess reserves ratio is ________ related to expected deposit outflows, and is ________ related to the market interest rate
A) negatively; negatively B) negatively; positively C) positively; negatively D) positively; positively
When elasticity is 0.1, demand is
A. elastic. B. inelastic. C. unit elastic. D. undefined.