When the desired reserve ratio is 10 percent, suppose the Fed ...

[rl]

When the desired reserve ratio is 10 percent, suppose the Fed buys 1,000,000 of government securities from banks. As a result, the banks' excess reserves
 
  A) increase by 900,000.
  B) increase by 1,000,000.
  C) increase by 10,000.
  D) decrease by 10,000.
  E) decrease by 1,000,000.

Question 2

The prisoners' dilemma is an example of a(n) ________ game.
 
  A) simultaneous move
  B) extensive-form
  C) zero-sum
  D) mixed strategy

[Joy Chen]

Answer to Question 1

B

Answer to Question 2

A

[rl]

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[at]

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