Ceteris paribus, if the Fed raises the reserve requirement, then:
A. The money multiplier increases.
B. The lending capacity of the banking system decreases.
C. Excess reserves increase.
D. Required reserves decrease.
B. The lending capacity of the banking system decreases.
Economics
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Money that has value because the government has declared it legal tender to pay debts:
a. currency b. commodity money c. representative money d. fiat money
Economics
The above figure shows the market demand curve for telecommunication while driving one's car (time spent on the car phone). The current price is 35ยข per minute. What is the consumer surplus at the current price?
A) 924.5 B) 1075 C) 301 D) 1250
Economics