Author Question: If the desired reserve ratio is 3 percent and deposits totaled 575 billion, banks would hold A) ... (Read 49 times)

Mr3Hunna · **on:** Jun 29, 2018

If the desired reserve ratio is 3 percent and deposits totaled 575 billion, banks would hold

A) 534.75 in reserves.
B) 17.25 billion in excess reserves.
C) 1,725 billion in currency.
D) 17.25 billion in reserves.

Question 2

A factor that turned out to be a weakness of the classical theory of growth is its

A) emphasis on saving and investment.
B) assumption that the growth rate of the population increases when income increases.
C) reliance on constant growth in technology.
D) neglect of the subsistence real wage.