In response to the overvalued dollar in the early 1970s, the German Bundesbank bought dollars and sold marks to keep the exchange rate fixed, gaining international reserves
The huge purchase of international reserves meant that the German monetary base began to ________, leading to ________ growth in the German money supply. A) decline; sluggish
B) decline; rapid
C) grow; sluggish
D) grow; rapid
D
Economics
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The best example of an increase in capital is:
A) The discovery of new oil reserves. B) new computer software. C) legal immigration of computer programmers. D) conversion of military facilities to civilian uses.
Economics
Suppose a bank has $100,000 in checking account deposits with no excess reserves and the required reserve ratio is 5 percent. If the Federal Reserve lowers the required reserve ratio to 3 percent, then the bank will now have excess reserves of
A) $0. B) $2,000. C) $3,000. D) $5,000.
Economics