A decrease in the required reserve ratio will:
A. decrease commercial bank loans and reduce the money supply.
B. increase commercial bank loans and reduce the money supply.
C. increase commercial bank loans and increase the money supply.
D. decrease commercial bank loans and increase the money supply.
Answer: C
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If Ana devotes all her time to making fudge, she can make 3 pounds of fudge an hour, and if she devotes all her time to making toffee, she can make 2 pounds of toffee an hour. If Leo devotes all his time to making fudge, he can make 4 pounds of fudge an hour, and if he devotes all his time to making toffee, he can make 5 pounds of toffee an hour. According to The Principle of Comparative Advantage, Ana and Leo will be able to produce more overall if:
A. the Principle of Comparative Advantage does not hold in this example. B. both Leo and Ana specialize in fudge. C. Ana specializes in fudge and Leo specializes in toffee. D. Leo specializes in fudge and Ana specializes in toffee.
Figure 17-4
In , the equilibrium price of Dominican pesos is Pe. If the Dominican Republic government fixes the price of foreign currency in terms of domestic currency at Pf (below equilibrium), what does the quantity Qd through Qs represent?
a.
the quantity of Dominican exports
b.
a shortage of foreign exchange
c.
the quantity of Dominican imports
d.
a surplus of foreign exchange
Marginal cost
A. Is the change in total cost associated with a one-unit increase in production. B. Is the change in total output from hiring one more factor of production. C. Is the change in the total cost when hiring one more factor of production. D. Falls when there are diminishing returns.
If the government wants to engage in fiscal policy to increase real GDP, it could...
What will be an ideal response?