Excess reserves are equal to:
a. total reserves plus required reserves.
b. total reserves multiplied by required reserves.
c. total reserves minus loans.
d. total reserves minus required reserves.
e. required reserves minus loans.
d
You might also like to view...
Use the following graph of the demand for noodles to answer the question below.
Refer to the three demand curves for noodles. Which of the following would shift the demand for noodles from D1 to D2?
A. an increase in the number of buyers of noodles B. People hear that eating noodles can have negative health effects. C. a decrease in the price of noodles D. a decrease in the number of buyers of noodles
Which of the following types of workers might have wages that change quickly?
A) union workers B) movie stars and rock stars C) unskilled, low-wage workers D) employees of state and local governments
Suppose the economy is initially experiencing a recessionary gap. A reduction in the size of the budget deficit will cause which of the following in the short run?
A) a reduction in the size of the recessionary gap and increase in real GDP. B) an increase in the size of the recessionary gap and decrease in real GDP. C) an increase in inflation and increase in aggregate supply. D) an inflationary gap.
Sonny and his girlfriend are stranded on an island. Sonny can produce 8 cups of berries per day, or 3 ounces of honey. His girlfriend can produce 10 cups of berries per day, or 6 ounces of honey. Explain who has the absolute advantage in berry
production and who has the absolute advantage in honey production. Explain why the person who has the absolute advantage in berry production should not produce berries.