An initial deficiency in reserves of $20 and a required reserve ratio of .5 lead to a maximum demand deposit contraction of

Javier has been thinking about purchasing a bond but is afraid that the bond will lose value. He has decided to hold money instead. This is known as the

A) money balance demand for money. B) precautionary demand for money. C) transactions demand for money. D) asset demand for money.

The table above displays the possible outcomes for Bob and Joe, who have been arrested for armed robbery and car theft. Which of the following is TRUE?

A) If Joe confesses, Bob should not confess. B) If Bob confesses, Joe should confess. C) The dominant equilibrium is that Joe and Bob both serve 2 years. D) If Joe does not confess, Bob should not confess.