Author Question: Assume a simplified banking system subject to a 25 percent required reserve ratio. If there is an ... (Read 65 times)

B

  • Hero Member
  • *****
  • Posts: 570
Assume a simplified banking system subject to a 25 percent required reserve ratio. If there is an initial increase in excess reserves of 100,000 . the money supply:
 a. increases 100,000 b. increases 400,000.
  c. increases 125,000 d. decreases 500,000.

Question 2

Economic growth is represented by a rightward shift of the long-run aggregate supply curve (LRAS).
 a. True
  b. False
  Indicate whether the statement is true or false



bulacsom

  • Sr. Member
  • ****
  • Posts: 329
Answer to Question 1

b

Answer to Question 2

True



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Did you know?

In inpatient settings, adverse drug events account for an estimated one in three of all hospital adverse events. They affect approximately 2 million hospital stays every year, and prolong hospital stays by between one and five days.

Did you know?

Pubic lice (crabs) are usually spread through sexual contact. You cannot catch them by using a public toilet.

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Did you know?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

For a complete list of videos, visit our video library