If the desired reserve ratio decreases, then
A) banks are able to make more loans.
B) banks' desired reserves decrease and their excess reserves do not change.
C) banks' desired reserves increase and their excess reserves decrease.
D) banks are forced to buy fewer government securities.
E) bank customers become more willing to make deposits in banks.
A
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At a competitive equilibrium, if there are no taxes, subsidies, price regulations, quantity regulations, or externalities,
A) the marginal benefit is greater than the marginal cost. B) resource use is efficient. C) the marginal benefit is less than the marginal cost. D) both the marginal benefit and the marginal cost of the last unit produced equal zero. E) the marginal benefit is greater than the marginal cost by as much as possible.
The IMF lends at low interest rates and without preconditions
Indicate whether the statement is true or false