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Author Question: In a simplified banking system in which all banks are subject to a 10 percent required reserve ... (Read 66 times)

berenicecastro

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on: Jun 30, 2018
In a simplified banking system in which all banks are subject to a 10 percent required reserve ratio, a 1,000 open market sale by the Fed to a bank would cause the money supply to:
 a. increase by 1,000.
  b. increase by 100,000.
  c. decrease by 10,000.
  d. decrease by 1,000.
  e. remain unchanged.

Question 2

Describe the vicious cycle of poverty. What are the consequences of this cycle?


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Jane

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Reply #1 on: Jun 30, 2018
Answer to Question 1

c

Answer to Question 2

The vicious cycle of poverty explains that the people in LDCs are poor because of a low level of investment in capital goods production, and the low level of investment is because the people are poor. The consequences are high infant mortality rates, low life expectancy, a low percentage of people using safe water, and a low percentage of school aged children in school.


berenicecastro

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Reply 2 on: Jun 30, 2018
Gracias!

Dnite

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Reply 3 on: Yesterday
:D TYSM

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