Suppose the Federal Reserve System has a required reserve ratio of 0.20 and there are no excess reserves in the system. If the Open Market Committee buys $20 million of securities from the commercial banking system, the total lending capacity of the system
A. Decreases by $100 million.
B. Increases by $20 million.
C. Decreases by $20 million.
D. Increases by $100 million.
Answer: D
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If the Gini coefficient for Cartland is 1, it means that income distribution is perfectly equal in this society
Indicate whether the statement is true or false
If the total cost of producing one unit of the output is $100 and the marginal cost of that unit is $20, the average fixed cost of producing two units of output is ________
Fill in the blank(s) with correct word