Assume that the loans made by the Paris First National Bank contracted from $16 million to $12 million. If the legal reserve requirement was increased from 20 percent to 40 percent, how much would the money supply shrink?
a. $5 million
b. $10 million
c. $15 million
d. $20 million
e. $24 million
D
You might also like to view...
The proportion of total direct expenditure made by local governments is called the centralization ratio.
A. True B. False C. Uncertain
The distribution of money income can be represented graphically using
A) supply and demand diagrams. B) a Lorenz curve. C) a Keynesian curve. D) a Distribution curve.
An example of exclusive dealing occurs when
a. one individual serves on more than one board of directors b. one individual serves on only one board of directors c. a producer sells spark plugs to a car manufacturer with the understanding that the manufacturer will buy spark plugs only from that producer d. the seller offers a good for sale to an individual (or a limited group) on substantially better terms than is available to the general public e. a producer of spark plugs requires that customers also purchase rotors when they buy spark plugs
The Fed has announced it views its long term target for the inflation rate as:
A. 10 percent. B. 5 percent. C. 0 percent. D. 2 percent.