Assume that the Fed lowers the required reserve ratio. How will this affect the money supply?
a. It would decrease.
b. It would increase.
c. It would remain unchanged.
d. It depends on the value of interest rates.
b
You might also like to view...
A marginally attached worker is
A) a person who is not happy with his or her job. B) someone who works part-time more than 25 hours per week but wants full-time work. C) someone who does not have a job but is available and willing to work and has made specific but unsuccessful efforts to find a job during the past 4 weeks. D) someone who does not have a job but is available and willing to work but has not made specific efforts to find a job during the past 4 weeks. E) another name for an unemployed worker.
The principal cause of the decline in the AFDC caseload between 1993 and 1997 was state-initiated reforms
Indicate whether the statement is true or false
Use the following general linear demand function below:Qd = a + bP + cM + dPRwhere Qd = quantity demanded, P = the price of the good, M = income, PR = the price of a good related in consumption.If c = 15 and d = 20, the good is
A. a normal good. B. an inferior good. C. a substitute for good R. D. a complement with good R. E. both a and c
A reduction in the real exchange rate will cause
A) a reduction in net exports. B) a reduction in the quantity of imports. C) a reduction in output. D) an increase in government spending. E) all of the above