If the required reserve ratio decreases, the:
a. money multiplier increases.
b. money multiplier decreases.
c. amount of excess reserves the bank has decreases.
d. money multiplier stays the same.
e. amount of excess reserves stays the same.
a
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Monetary policy refers to the actions the
A) Federal Reserve takes to manage the money supply and interest rates to pursue its macroeconomic policy objectives. B) Federal Reserve takes to manage government spending and taxes to pursue its economic objectives. C) President and Congress take to manage government spending and taxes to pursue their economic objectives. D) President and Congress take to manage the money supply and interest rates to pursue their economic objectives.
Which of the following statements about a non-discriminating monopoly firm is correct?
a. It charges a price greater than its marginal cost. b. Its high prices generate inflation. c. It charges a price that maximizes its total revenues. d. As a price setter, it can ignore market demand. e. It has no incentive to produce each output level at the lowest possible cost.
Which of the following statements is false?
A. Disinflation generally occurs during recessions. B. If the CPI rose from 100 to 500, the price level rose by 500 percent. C. If our economy is at full employment, the cyclical rate of unemployment would be zero percent. D. During business cycles, troughs are followed by recoveries.
In an open economy,[C + I + G + EX - IM] equals
A. unplanned inventories. B. aggregate supply. C. the balance of trade. D. planned aggregate expenditures.