If banks have no excess reserves, and the required reserve ratio is raised, the amount that banks can lend is:
A. reduced and the money supply contracts.
B. reduced and the money supply expands.
C. reduced and there is no change in the money supply.
D. increased and the money supply expands.
Answer: A
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According to current Justice Department guidelines, mergers in an industry are seldom challenged if the industry
a. would have a postmerger Herfindahl index greater than 1,800 b. would have a postmerger Herfindahl index less than 1,000 c. has a premerger Herfindahl index greater than 1,800 d. has a premerger Herfindahl index less than 1,000 e. has a premerger Herfindahl index equal to 10,000
Figure 10-7
Refer to Figure 10-7. Which of the diagrams in Figure 10-7 represents a decrease in consumer spending combined with a positive supply shock?
a.
Panels (A) & (B)
b.
Panels (C) & (D)
c.
Panels (A) & (C)
d.
Panels (B) & (D)
Suppose the following information describes the economy:Consumption8000Investment1,000Government purchases1,000Net exports0Government transfers and interest payments500Government tax collections1,700Private saving equals ________; public saving equals ________; national saving equals ________.
A. 1,000; 800; 1,000 B. 800; 200; 600 C. 1,500; 700; 2,700 D. 800; 200; 1,000
If a firm offers quantity discounts or special promotional allowances only to favored distributors and the effect is to substantially lessen competition, then it is in violation of the:
A. Clayton Act. B. Robinson-Patman Act. C. Sherman Antitrust Act. D. Celler-Kefauver Act.