Other things the same if reserve requirements are decreased, the reserve ratio
a. decreases, the money multiplier increases, and the money supply decreases.
b. increases, the money multiplier increases, and the money supply increases.
c. decreases, the money multiplier increases, and the money supply increases.
d. increases, the money multiplier increases, and the money supply decreases.
c
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Refer to Figure 15-9. In the figure above suppose the economy is initially at point A. The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by the Federal Reserve?
A) an increase in the required reserve ratio B) a decrease in income taxes C) an open market sale of Treasury bills D) an open market purchase of Treasury bills
A decrease in quantity demanded is given by a(n)
a. downward shift of the demand curve b. upward shift of the demand curve c. downward movement to the right along the demand curve d. upward movement to the left along the demand curve e. downward shift of both demand and supply curves
One of the problems created by price floors is that
a. consumers complain about high prices b. firms have no incentives to reduce cost c. excess supply is created d. people must learn to cope with excess demand e. technological change is significantly impacted
Which of the following would most likely be said by a critic of advertising?
a. “It gives information that some consumers might use.” b. “It makes a product seem different from similar products.” c. “It wastes too much money on unimportant products.” d. “It gives people what they are looking for.”