An increase in the required reserve ratio, say from 10 to 12 percent would:
a. decrease the money supply by a substantial amount.
b. decrease the money supply by a small amount
c. increase the money supply by a substantial amount.
d. increase the money supply by a small amount.
a
You might also like to view...
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.
Monopolies do not last in the long-run
Indicate whether the statement is true or false
Which of the following is an example of a tie-in sale?
A. In order to buy Dell Computers, you must also buy Microsoft Windows to get the warranty. B. Bus rides are cheaper for senior citizens than for other people. C. Two companies merge to form one company. D. Prices are set just low enough to prevent other firms from entering the market.
When considering a two-input production function, one of which is increasing while the other is fixed, at some point called the point of diminishing returns, output will increase at a decreasing rate
Indicate whether the statement is true or false