If the Federal Reserve is currently paying 0.75 percent interest on bank reserves, but then increases that interest rate to 1 percent, banks may decide to hold ________ reserves, and the money supply may ________.
A. more; decrease
B. fewer; decrease
C. fewer; increase
D. more; increase
Answer: A
You might also like to view...
Bid-rigging is more likely when
a. auctions are for larger amounts b. auctions are frequent c. auctions are infrequent d. the auctioneer is paid on commission rather than a fixed fee
Suppose the base year of the CPI is 2010, and the CPI calculated for 2012 was 102. What is the correct interpretation of this number?
A. The cost of living for a typical consumer is 2 % higher than it was in 2010. B. Average prices in the economy have increased by 1.9 % since 2010. C. The average goods of all consumers has risen an average of 2 % from 2010 to 2012. D. Average prices in the economy have increased by 102 % since 2010.
The following graph shows the production possibilities curve for the economy with only two members, Silvia and Art. Silvia can produce either 50 pounds of beef or 2 computers per week, and Art can produce 100 pounds of beef or 1 computer per week. Both of them work 40 weeks per year.
Silvia's opportunity cost of producing one computer is ________ pounds of beef.
A. 1/50 B. 25 C. 1/25 D. 50
A "common" logarithm is the logarithm of the
A. power of two. B. base "e." C. base 10. D. base 2.