If reserves in the banking system increase by $100, then checkable deposits will increase by $100 in the simple model of deposit creation when the required reserve ratio is
A) 0.01.
B) 0.10.
C) 0.20.
D) 1.00.
D
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The supply of domestic assets ________
A) is insensitive to changes in the nominal exchange rate B) rises when the nominal exchange rate rises C) falls when the nominal exchange rate rises D) equals the value of exports minus the value of imports
Labor productivity increases when
A. capital/labor ratio decreases. B. labor and output increase proportionately. C. output decreases and labor increases. D. capital increases and labor remains constant.
Using Figure 9.1, explain what a firm would do in the short run if the market price of its product were at P4 and it produced Q4 . Is the firm earning an economic profit? Explain
What will be an ideal response?
An increase in the quantity of a product supplied is caused by an increase in the price of the product
Indicate whether the statement is true or false