The number of dollars that the commercial banking system can add to the money supply for each dollar of new reserves created by the Fed
A) cannot legally be greater than 8 nor less than 2.
B) is governed largely by reserve requirements and the form in which the public chooses to hold money.
C) is less than one because a portion of new reserves must be retained in bank vaults or on deposit with the Fed.
D) would increase if the public decided to transfer the amounts currently in commercial bank savings accounts into checking accounts.
Question 2
The above figures show the market for hamburger meat. Which figure(s) shows the effect of an increase in the number of people who eat hamburger meat?
A) Figure A
B) Figure B
C) Figure C
D) Figures A and C
