If reserves increase by $5 million, what is the difference in the resulting change in checkable deposits when the required reserve ratio is 12.5 percent compared to when it is 10 percent?
A) $12.5 million
B) $10 million
C) $2.5 million
D) $100 million
B
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Jack and Diane each buy pizza and paperback novels. Pizza costs $3 per slice, and paperback novels cost $5 each. Jack has a budget of $30, and Diane has a budget of $15 to spend on pizza and paperback novels. Which consumer(s) can afford to purchase 3 slices of pizza and 4 paperback novels?
a. Jack only b. Diane only c. both Jack and Diane d. neither Jack nor Diane
A decrease in interest rates caused by a change in the price level would cause a(n):
A. Decrease (or shift left) in aggregate demand B. Increase (or shift right) in aggregate demand C. Decrease in the quantity of real output demanded (or movement up along AD) D. Increase in the quantity of real output demanded (or movement down along AD)