If you were a professor of economics and asked the class what would happen when the Fed raises the legal reserve requirement, you would hope to hear that the
a. banks must reduce the amount of loans they make
b. banks can increase the amount of loans they make
c. banks must reduce the interest rate they charge on the loans they make
d. banks can raise the interest rate on loans they make
e. banks must reduce the federal funds rate they charge to other banks
A
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Refer to Table 4-2. The table above lists the highest prices five consumers are willing to pay for a concert ticket. If the price of one ticket falls from $50 to $20
A) everyone will buy a ticket. B) consumer surplus decreases from $48 to $24. C) only three tickets will be sold. D) consumer surplus increases from $0 to $62.
Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for bicycle helmets. Which panel best describes what happens in this market if there is a substantial increase in the price of bicycles?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
Which is least accurate about foreign trade?
a. In the early 1900s, the most industrialized nations exported foodstuffs and raw materials to the least developed countries. b. After the Civil War, rapid improvements in communications, like the first successful transatlantic cable, lowered the price of trade. c. After the Civil War, rapid improvements in transportation, like the opening of the Suez Canal and developments of railroads, reduced the price of shipping. d. In the late 1800s and early 1900s the network of international trade assumed many of its modern characteristics.
Unemployment insurance reduces the incentive for the unemployed to find and take new jobs
a. True b. False Indicate whether the statement is true or false