Raising the required reserve ratio causes the money multiplier to increase
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following is a short-run adjustment?
a. Toyota builds an automobile plant in Kentucky. b. Faced with increasing enrollment, a private college builds a new School of Business building. c. Because of staggering losses, three insurance companies exit the industry. d. People's Bank hires two new tellers to meet increased demand for customer services. e. Shaveco enters the razor blade market with a new product, produced in the United States.
Refer to the graph shown. If a competitive industry producing hamburgers is taken over by a pure monopoly firm that maximizes profit:
A. price will remain at $4 but output will fall by 100. B. price will rise to $6 and output will fall by 100. C. price will remain at $6 but output will fall by 100. D. output will remain at 100 but price will rise to $6.
Which of the following are included in calculating economic costs?
A. implicit costs B. explicit costs C. accounting costs D. All of these are correct.
If the wage rate in the labor market is $12 and more previously unemployed people exited the labor force, which of the following statements is correct?
A. If wages are flexible, the unemployment rate increases. B. If wages are flexible, then wages will decrease. C. If wages are sticky, the unemployment rate decreases. D. If wages are sticky, the unemployment rate stays the same.