If the Board of Governors of the Federal Reserve System increases the legal reserve ratio, this change will:
A. Increase the excess reserves of member banks and thus increase the money supply
B. Increase the excess reserves of member banks and thus decrease the money supply
C. Decrease the excess reserves of member banks and thus decrease the money supply
D. Decrease the excess reserves of member banks and thus increase the money supply
C. Decrease the excess reserves of member banks and thus decrease the money supply
You might also like to view...
Table 3-2 Combination Cotton Corn A 12 16 B 17 15 C 21 13 D 23 9 E 24 5 ? The concept of opportunity cost can be represented graphically by the
A. area inside the production possibilities frontier. B. slope of the production possibilities frontier. C. vertical distance from the horizontal axis to the production possibilities frontier. D. horizontal distance from the vertical axis to the production possibilities frontier. E. sum of the horizontal and vertical distances to the production possibilities frontier.
The ratio of the increase in equilibrium real GDP to the increase in autonomous expenditure is called the
A) MPC. B) consumption function. C) MPS. D) multiplier.
A family's income tax liability is
a. a standard percentage of all income earned. b. determined by wage income rather than dividend and interest income. c. based on total income. d. constant from year to year.
The long-run impact of unanticipated expansionary policy is ______.
a. underproduction b. overproduction c. deflation d. inflation