Which of the following is not a consequence of the Fed changing the reserve requirement?
A) Changes in the ratio are easily incorporated into banks' routine management.
B) Changes in the ratio effectively places a tax on banks' deposit taking and lending activities.
C) Decreasing the ratio will increase excess reserves.
D) Increasing the ratio will decrease the amount of reserves banks have to loan.
A
You might also like to view...
If the Fed has the discretion to choose its policy and announces a low inflation policy, then
a. the public is likely to discount this claim because the Fed has an incentive to change their policy in the future. b. the public is likely to believe this claim because the Fed has no incentive to change their policy in the future. c. the Fed will always cheat and increase inflation in the future. d. the Fed will have to keep inflation lower in the future or they will be voted out of office. e. none of the above.
Refer to the table below. If the cost per unit of advertising is constant at $550, what is the level of advertising per week that maximizes the industry joint profit?
Suppose the dairy industry is made of up only by the three firms above; Cow Haven, Free Cows, and Happy Cows.
A) 4 B) 5 C) 3 D) 2
The Bureau of Labor Statistics' U-1 measure of joblessness includes only very long-term unemployed
a. True b. False Indicate whether the statement is true or false
Normative economic statements
A. are statements that may be tested by referring to facts and data. B. are statements of "what ought to be." C. do not involve value judgments. D. are statements of "what is."