If the desired reserve ratio is 10 percent and there is no ...

[itsmyluck]

If the desired reserve ratio is 10 percent and there is no currency drain, then a 100 increase in the monetary base leads the banking system to increase the quantity of money by
 
  A) 1,000.
  B) 400.
  C) 900.
  D) 110.
  E) 1,100.

Question 2

Willingness to pay:
 
  A) is the lowest price that a buyer is willing and able to pay for a unit of good.
  B) is the highest price that a buyer is willing and able to pay for a unit of good.
  C) is equal to the price of the lowest-priced goods in a consumption bundle.
  D) is equal to the price of the highest-priced goods in a consumption bundle.

[Liddy]

Answer to Question 1

A

Answer to Question 2

B

[itsmyluck]

Excellent

[sultansheikh]

TYSM