A lowering of the required reserve ratio might not expand the money supply if:
a. tax rates are also lowered at the same time.
b. tax rates are increased at the same time.
c. borrowers are unwilling to borrow the new funds the banks have available for loans.
d. borrowers are willing to borrow the new funds the banks have available for loans..
e. borrowers expand their borrowing because of the lower interest rates that banks offer.
c
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The argument that it is necessary to protect a new industry to enable it to grow into a mature industry that can compete in world markets is known as the
A) national security argument. B) diversity argument. C) infant-industry argument. D) environmental protection argument. E) national youth protection argument.
The long-run aggregate supply curve is upward sloping
Indicate whether the statement is true or false
What is normally the ultimate cause of hyperinflation?
What will be an ideal response?
In deciding whether to operate in the short run, the firm must be concerned with the relationship between price of the output and
A) total cost. B) average variable cost. C) total fixed cost. D) the number of buyers.