Author Question: The Fed buys securities and gives the bank a check for the amount. After the check has cleared, ... (Read 61 times)

joblessjake

  • Hero Member
  • *****
  • Posts: 555
The Fed buys securities and gives the bank a check for the amount. After the check has cleared,
 
  A) reserves remain unchanged because the increase of reserves at the bank are offset by an increase in reserves at the Fed.
  B) reserves have decreased by the amount of the check because the Fed pays for the check by decreasing the bank's deposits at the Fed.
  C) reserves have increased by the amount of the check because the Fed pays for the check by increasing the amount of the bank's deposits with the Fed.
  D) reserves have increased by the amount of the reserves multiplied by the required reserve ratio, and the quantity of money increases by the difference between the amount of the check and the increase in the reserves.

Question 2

Which one of the following statements about growth theories is CORRECT?
 
  A) In the new growth theory, knowledge is not subject to diminishing returns.
  B) In neoclassical growth theory, technological progress is the result of rapid increases in saving and investment in capital per person.
  C) In classical growth theory, real GDP per person is unrelated to the subsistence real GDP.
  D) In classical growth theory physical resources are unlimited.



jliusyl

  • Sr. Member
  • ****
  • Posts: 328
Answer to Question 1

C

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

For a complete list of videos, visit our video library