If a bank uses $200 of excess reserves to make a new loan when the reserve ratio is 15 percent, this action by itself initially makes the money supply
a. and wealth increase by $200.
b. and wealth decrease by $200.
c. increase by $200 while wealth does not change.
d. decrease by $200 while wealth decreases by $200.
c
Economics
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What does a horizontal demand curve indicate about the price elasticity of demand?
What will be an ideal response?
Economics
If the marginal cost curve shifts upward, a profit-maximizing, nondiscriminating monopolist is likely to respond in the short run by
a. raising price and increasing output b. raising price and decreasing output c. keeping price constant and increasing output d. reducing price and increasing output e. shutting down
Economics