Author Question: If the desired reserve ratio is 10 percent and there is no currency drain, then a 100 increase in ... (Read 115 times)

itsmyluck · **on:** Jun 29, 2018

If the desired reserve ratio is 10 percent and there is no currency drain, then a 100 increase in the monetary base leads the banking system to increase the quantity of money by

A) 1,000.
B) 400.
C) 900.
D) 110.
E) 1,100.

Question 2

Willingness to pay:

A) is the lowest price that a buyer is willing and able to pay for a unit of good.
B) is the highest price that a buyer is willing and able to pay for a unit of good.
C) is equal to the price of the lowest-priced goods in a consumption bundle.
D) is equal to the price of the highest-priced goods in a consumption bundle.