A reduction in the required reserve ratio has the instant effect of:
a. Increasing the monetary base.
b. Increasing total bank reserves
c. Increasing excess reserves.
d. Increasing bank shareholders' equity.
e. Decreasing bank shareholders' equity.
.C
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Assume two nations are involved in an arms race. They both assume that each faces two choices – sign disarmament accord or continue with military expansion and the building of more nuclear missiles
Explain using the prisoner's dilemma model why both of these nations will choose to escalate the arms race rather than choose bilateral disarmament. During the Cold War President Ronald Reagan was quoted as saying that the United States will "trust, but verify" when discussing nuclear nonproliferation agreements between the U.S. and the Soviet Union. How does this relate to your answer to the first part of this question?
Firms need to know the shape of a demand curve to use marginal analysis
a. True b. False Indicate whether the statement is true or false