Suppose the reserve ratio is RR. Then, A) required reserves = ...

[scienceeasy]

Suppose the reserve ratio is RR. Then,
 
  A) required reserves = RR  excess reserves. B) required reserves = RR  loans.
  C) required reserves = RR  deposits. D) required reserves = RR  actual reserves.

Question 2

Refer to Table 4-3. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the price of polo shirts decreases from 15 to 10
 
  A) producer surplus will fall from 13 to 3.
  B) consumers will buy no polo shirts.
  C) there will be a shortage of polo shirts.
  D) the marginal cost of producing the third polo shirt will increase to 25.

[apple]

Answer to Question 1

C

Answer to Question 2

A

[scienceeasy]

TYSM

[kalskdjl1212]

Excellent