The law of diminishing returns predicts that

While rent subsidies have some disadvantages, one advantage of rent subsidies is _____

a. administrative costs are low b. there is little chance of fraud c. the renter can chose from among different housing qualities d. renters have a strong incentive to shop carefully

If the Fed increases the required reserve ratio, how will this affect excess reserves and the money supply?

A. Both will increase. B. Excess reserves increase and the money supply decreases. C. Both will decrease. D. Excess reserves decrease and the money supply increases.