Author Question: Every dollar added to the total reserves of the commercial banking system A) compels the banks to ... (Read 55 times)

burchfield96 · **on:** Jun 29, 2018

Every dollar added to the total reserves of the commercial banking system

A) compels the banks to reduce their loans by more than a dollar.
B) compels the banks to expand their loans by more than a dollar.
C) enables the banks to expand their loans by more than a dollar.
D) enables the banks to expand their loans by one dollar.
E) is one less dollar in the hands of the public.

Question 2

In the above figure, a change in quantity supplied with unchanged supply is represented by a movement from

A) point a to point e.
B) point b to point a.
C) point e to point c.
D) point b to point e.