If demand deposits increase, the result is that

a. required reserves must increase
b. the reserve ratio must increase
c. all banks are "loaned up"
d. the number of loans must decrease
e. all banks are suffering a loss


A

Economics

You might also like to view...

The following data represent a personal income tax schedule. Answer the next question on the basis of this information.Taxable IncomeTotal Tax$15,000$1,50030,0003,50060,0009,000120,00025,000As income increases, the average tax rate

A. decreases. B. increases. C. remains constant. D. has no definite pattern.

Economics

In the electric power industry, residential customers have relatively ____ demand for electricity compared with large industrial users. But contrary to price discrimination, large industrial users generally are charged ____ rates

a. similar, similar b. elastic, lower c. elastic, higher d. inelastic, lower e. inelastic, higher

Economics

An increase in the supply of gasoline, ceteris paribus, will cause equilibrium price

A. To fall and equilibrium quantity to rise. B. And equilibrium quantity to fall. C. To rise and equilibrium quantity to fall. D. And equilibrium quantity to rise.

Economics

When the real wage rate changes, firms change the __________ and the level of production.

A. wage rate of employees B. quality of goods or services produced C. quantity of labor employed D. production plans

Economics