Suppose the banks in the Federal Reserve System have $400 million in transactions accounts and the reserve requirement is 0.10. Ceteris paribus, if the reserve requirement is decreased to 0.05, then excess reserves will increase by:

What does the circular flow model show?

(A) What inputs are required for what outputs. (B) How many firms can support the needs of how many households. (C) How profits are made. (D) The interactions between households and businesses in the free market.

A monopoly is a seller of a product

A) with a perfectly inelastic demand. B) without a well-defined demand curve. C) with many substitutes. D) without a close substitute.