Author Question: If the desired reserve ratio increases, then A) banks' desired reserves increase and their excess ... (Read 63 times)

jCorn1234 · **on:** Jun 29, 2018

If the desired reserve ratio increases, then

A) banks' desired reserves increase and their excess reserves decrease.
B) bank customers become more willing to make deposits in banks.
C) banks are able to make more loans.
D) banks can buy more government securities.
E) the Fed has supplied banks with more reserves.

Question 2

At the midpoint of a linear demand curve, the price elasticity of demand is:

A) equal to zero.
B) between zero and one.
C) equal to one.
D) greater than one.