When the required reserve ratio is increased, the excess reserves of member banks are:
A. reduced, but the multiple by which the commercial banking system can lend is unaffected.
B. reduced and the multiple by which the commercial banking system can lend is increased.
C. increased and the multiple by which the commercial banking system can lend is increased.
D. reduced and the multiple by which the commercial banking system can lend is reduced.
D. reduced and the multiple by which the commercial banking system can lend is reduced.
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Consider an industry that is in long-run equilibrium. An increase in demand leads to no change in the price of the good. We know that this is
A) a decreasing cost industry. B) a constant cost industry. C) an increasing cost industry. D) not a competitive industry.
Assume that the central bank increases the reserve requirement. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and current international transactions in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period falls, and current international transactions becomes more negative (or less positive). b. The quantity of real loanable funds per time period rises, and current international transactions becomes more positive (or less negative). c. The quantity of real loanable funds per time period rises, and current international transactions remain the same. d. There is not enough information to determine what happens to these two macroeconomic variables. e. The quantity of real loanable funds per time period and current international transactions remain the same.
A useful theory must
A. apply to every conceivable situation. B. be broadly applicable. C. be agreed upon by all economists. D. not be able to be refined.
The percentage of our population below the poverty line is about _____%.
Fill in the blank(s) with the appropriate word(s).