A reduction in the required reserve ratio has the instant effect of:
a. Increasing excess reserves.
b. Increasing bank shareholders' equity.
c. Increasing bank reserves.
d. All of the above are correct.
e. None of the above is correct.
.A
Economics
You might also like to view...
When government spending is increased, the amount of the increase in aggregate demand primarily depends on:
A. The average propensity to consume B. The size of the multiplier C. Income taxes D. Exchange rates
Economics
When total expenditures exceed the economy’s potential GDP, the proper fiscal policy is to
A. increase transfer payments to the poor and elderly. B. cut personal income tax rates. C. decrease government purchases. D. increase purchasing power.
Economics