Which of the following is true?
a. Actual reserves equal required reserves minus excess reserves
b. The predominant liability of virtually all banks is loans.
c. The lower the required reserve ratio, the larger the money multiplier.
d. If some banks choose not to lend all of their excess reserves, the total amount of money created by an initial cash deposit will be larger.
c
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According to chapter 1 in your textbook, while economic theory offers a biased perspective on social phenomena,
A) it deserves our confidence, but only when it is confined to the monetary or financial sector of society. B) it is useless to anyone who rejects the free market system. C) it is nonetheless worth learning. D) it is superior to all the other social sciences.
Indicate whether each of the following situations would shift the supply curve to the left, to the right, or not at all
a. An increase in the price of an input b. An increase in productivity c. An increase in the price of a substitute in production d. A decrease in the expected future price of a product e. A decrease in the current price of the product