What would happen to the availability of credit if banks chose to either increase or decrease the percentage of deposits they hold as reserves?
What will be an ideal response?
If banks chose to increase the percentage of deposits they hold as reserves, they will have less money for making loans, so the availability of credit will decrease. If banks chose to decrease the percentage of deposits they hold as reserves, they will have more money for making loans, so the availability of credit will increase.
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For the recession of 2007-2009, it took ________ for employment to return to its cyclical peak
A) about 18 months B) about 2.5 years C) about 3.5 years D) more than 6 years
Under Purchasing Power Parity
A) E$/E = PUS/PE. B) E$/E = PE/PES. C) E$/E = PUS + PE. D) E$/E = PUS - PE. E) E$/P = PUS/PE.
How does an increase in interest rates affect net exports?
What will be an ideal response?
Absolute price elasticities are calculated for four commodities, and the values are: 0.009; 1.0; 3.3; and 4.1. Which indicates the most price-responsive situation?
A) 0.009 B) 1.0 C) 3.3 D) 4.1