When the Fed makes higher interest payments on bank reserves, banks will hold ________ reserves which will ________ the money supply.
A. more; increase
B. more; decrease
C. less; increase
D. less; decrease
Answer: B
You might also like to view...
Refer to the scenario above. If the marginal cost of producing the last unit of the good is $40, Nash equilibrium will occur when both firms charge a price of ________
A) $20 B) $40 C) $60 D) $70
A widget producer is deciding whether to compensate widget makers on a salary basis or a per unit basis. Given that it is difficult to monitor shirking, which of these pay schedules would provide stronger performance incentives?
a. Per piece compensation b. Salary c. Both of them d. Neither of them
The transfer by check of a demand deposit written on one bank into another bank with no excess reserves gives the recipient bank additional liabilities
What will be an ideal response?
In response to an increase in AD: a. The price level will increase more in the long run than in the short run
b. Real output will increase more in the long run than in the short run. c. Both the price level and real output will increase more in the long run than in the short run. d. Neither the price level nor real output will change in the long run.