This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Say the required reserve ratio is 20 percent. If you pay back a loan of 10,000 a bank had previously ... (Read 83 times)

abarnes

  • Hero Member
  • *****
  • Posts: 556
on: Jun 30, 2018
Say the required reserve ratio is 20 percent. If you pay back a loan of 10,000 a bank had previously made to you, the act of paying back the loan:
 a. adds 2,000 in bank reserves.
 b. adds 10,000 in bank reserves.
 c. eliminates 2,000 in bank reserves.
  d. eliminates 10,000 in bank reserves.

Question 2

According to the long-run Phillips curve, which of the following will be the end result of an expansionary monetary policy when unemployment is at its natural rate?
 a. Zero inflation
  b. Deflation
  c. A constant level of potential real GDP
  d. A decrease in unemployment
  e. An increase in unemployment


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

sultana.d

  • Sr. Member
  • ****
  • Posts: 320
Reply #1 on: Jun 30, 2018
Answer to Question 1

b

Answer to Question 2

c


abarnes

  • Member
  • Posts: 556
Reply 2 on: Jun 30, 2018
Wow, this really help

mcabuhat

  • Member
  • Posts: 344
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

Did you know?

The oldest recorded age was 122. Madame Jeanne Calment was born in France in 1875 and died in 1997. She was a vegetarian and loved olive oil, port wine, and chocolate.

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

Tropical grassland of the Masai Mara Game Reserve in Kenya Tropical grassland of the Masai Mara Game Reserve in Kenya
This is the first portrait of George Washington, painted by John Gadsby Chapman. Washington’s right This is the first portrait of George Washington, painted by John Gadsby Chapman. Washington’s right
A strike by 800 women shoemakers in Lynn, Massachusetts, in 1860. In 1851 a Lynn shoemaker had adapt A strike by 800 women shoemakers in Lynn, Massachusetts, in 1860. In 1851 a Lynn shoemaker had adapt
Apply the body wrap substance to the back with long, smooth strokes, covering the area thoroughly. Apply the body wrap substance to the back with long, smooth strokes, covering the area thoroughly.
A mother invests $9000 in a bank account at the time of her daughter's birth. The interest is ... A mother invests $9000 in a bank account at the time of her daughter's birth. The interest is ...
No payments were made on a $2,598 loan during its three-year term. What was the annually ... No payments were made on a $2,598 loan during its three-year term. What was the annually ...
Video: Chromosome structural organization/ Mechanisms for chromosome movement Animation

For a complete list of videos, visit our video library