Which one of the following equations is correct?
A. Total reserves minus excess reserves equals required reserves.
B. Excess reserves minus required reserves equals total reserves.
C. Required reserves equals excess reserves divided by total reserves.
D. Total reserves equals excess reserves divided by required reserves.
A. Total reserves minus excess reserves equals required reserves.
You might also like to view...
What effect does expansionary monetary policy have on short-term real interest rates?
a. Expansionary monetary policy tends to push short-term interest rates upward. b. Expansionary monetary policy tends to push short-term interest rates downward. c. The effect of expansionary monetary policy on short-term interest rates is unpredictable. d. Expansionary monetary policy has no effect on short-term interest rates.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.
If the government decreases the income tax rate, then:
A. aggregate supply curve with shift to the right. B. aggregate demand will shift left. C. aggregate demand will shift right. D. GDP will decrease.
The individual firm's short-run supply curve is the part of its:
A. average variable cost curve that is upsloping. B. marginal cost curve lying above its average total cost curve. C. marginal cost curve lying above its average variable cost curve. D. average total cost curve that is upsloping.