The ________ the desired reserve ratio, the ________ the ________ in the quantity of money created from an initial increase of $100,000 in the monetary base
A) smaller; larger; decrease
B) larger; larger; decrease
C) larger; smaller; decrease
D) smaller; larger; increase
E) larger; larger; increase
D
You might also like to view...
Which of the following statements is true?
A) To an economist, demand is different from quantity demanded. B) A demand schedule is the numerical tabulation of the law of demand. C) A demand curve is the graphical representation of the direct relationship between price and quantity demanded. D) a and b E) a, b, and c
Suppose the price level is fixed, the MPC is .5, and the GDP gap is a negative $80 billion. To achieve full-employment output (exactly), government should:
A. increase government expenditures by $80 billion. B. reduce government expenditures by $40 billion. C. reduce taxes by $40 billion. D. reduce taxes by $80 billion.