Suppose a bank has 100,000 in checking account deposits with no excess reserves and the required reserve ratio is 5 percent. If the Federal Reserve lowers the required reserve ratio to 3 percent, then the bank will now have excess reserves of
A) 0. B) 2,000. C) 3,000. D) 5,000.
Question 2
In order to change inflationary expectations in 1979, the Fed's monetary policy under Paul Volcker's leadership resulted in ________ and ________.
A) steep inflation; low unemployment
B) deflation; high unemployment
C) disinflation; low unemployment
D) disinflation; high unemployment
E) steep inflation; high unemployment
Hydrocephalus. The figure on the left is a child with the enlarged ventricles of hydrocephalus. The
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