Assume a required reserve ratio of .25 and a discount rate of .05. If excess reserves rise by $20, demand deposits can expand by a maximum of

A) $20.
B) $25.
C) $80.
D) $100.


C

Economics

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What arguments can be made in favor of product differentiation and advertising?

What will be an ideal response?

Economics

Prices usually allocate resources efficiently because they allocate

A. consumption to the highest cost of good or service.
B. resources to the lowest value good or service.
C. consumption to the lowest value good or service.
D. resources to the highest value good or service.

Economics

If consumption is at point A, producers will increase output to equal what level?



a. B
b. C
c. D
d. E (Equilibrium)

Economics

Advertising can create a barrier to entry of new firms into an industry and therefore reduce competition.

Answer the following statement true (T) or false (F)

Economics