A lowering of the required reserve ratio might not expand the money supply if:
a. tax rates are also lowered at the same time.
b. tax rates are increased at the same time.
c. borrowers are unwilling to borrow the new funds the banks have available for loans.
d. borrowers are willing to borrow the new funds the banks have available for loans..
e. borrowers expand their borrowing because of the lower interest rates that banks offer.
c
You might also like to view...
Monopolistic competition is defined as a type of market structure where
A) many firms produce the good. B) firms produce a homogeneous good. C) there are barriers to entry. D) firms can earn positive profit in the long run.
A reentrant is an individual
A) in the labor force whose employment was involuntarily terminated. B) who used to work full time but left the labor force and has now reentered it looking for a job. C) in the labor force who quits voluntarily. D) who has never held a full-time job lasting two weeks or longer but is now seeking employment.