If all banks are subject to a uniform 25% reserve requirement and demand deposits are the only form of money, a $1,000 open market purchase by the Fed would cause the money supply to
A. increase by $1,000.
B. decrease by $1,000.
C. decrease by $4,000.
D. increase by $4,000.
D. increase by $4,000.
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A fall in the domestic interest rate leads to capital
A. outflows and exchange rate appreciation. B. outflows and exchange rate depreciation. C. inflows and exchange rate depreciation. D. inflows and exchange rate appreciation.
In the above table, for Mary the opportunity cost of producing a dress is ________ and the opportunity cost for Mark of producing a dress is ________
A) 1 1/2 jackets; 2 1/2 jackets B) 1 jacket; 1 jacket C) 1 dress; 1 dress D) 1 1/2 jackets; 2/3 of a jacket E) 1 1/4 jackets; 1/2 of a jacket
Which of the following offers the best reason why restaurants are not considered to be perfectly competitive firms?
A) Restaurants compete in small market areas—neighborhoods and cities—rather than in regional or national markets. Therefore, restaurants are not small relative to their market size. B) Restaurants usually have entry barriers in the form of zoning restrictions and health regulations. C) Restaurants do not sell identical products. D) Restaurants have significant liability costs that perfectly competitive firms do not have; for example, customers may sue if they suffer from food poisoning.
Which of the following is an example of a public good?
a. Pizzas b. A crowded bus stop c. National Defense d. Cable television