In a fractional-reserve banking system, an increase in reserve requirements
a. increases both the money multiplier and the money supply.
b. decreases both the money multiplier and the money supply.
c. increases the money multiplier, but decreases the money supply.
d. decreases the money multiplier, but increases the money supply.
b
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Workers in the United States receive significantly higher compensation than almost all other western European nations.
Answer the following statement true (T) or false (F)
An inferior good is a good for which the quantity demanded decreases as the price increases, holding everything else constant
Indicate whether the statement is true or false
Which of the following groups makes it a point to emphasize that inflation occurs when the annual rate of growth of the money supply exceeds the annual rate of growth of full- employment real GDP?
a. the classical school b. the Keynesian school c. the neo-Keynesian school d. the rational expectations school e. supply-siders
A statement describing how the world should be
A. is a positive statement. B. would only be made by an economist employed by the government. C. is a normative statement. D. would only be made by an economist speaking as a scientist.