A decrease in the reserve requirement would:
A) decrease excess reserves and reflect an expansionary monetary policy.
B) decrease excess reserves and reflect a contractionary monetary policy.
C) increase excess reserves and reflect an expansionary monetary policy.
D) increase excess reserves and reflect a contractionary monetary policy.
C
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What will be an ideal response?
The hypothesis that people combine the effects of past policy changes on important economic variables with their own judgment about the future effects of current and future policy changes is the basis of the
A) short-run Phillips curve hypothesis. B) rational expectations hypothesis. C) demand-pull inflation hypothesis. D) adaptive hypothesis.
If firms in a market have been prohibited from reaching the minimum efficient scale,
a. the market is probably perfectly competitive. b. the market is probably a monopoly. c. mergers will result if the restrictions are eliminated. d. the LRATC curve has been shifting upward. e. the LRATC curve has been shifting downward.
What does the text mean by the question, "Where Is All the Currency?" How does it answer the question?