Author Question: Assume the desired reserve ratio is 10 percent, banks loan all excess reserves and the currency ... (Read 83 times)

Kikoku

  • Hero Member
  • *****
  • Posts: 540
Assume the desired reserve ratio is 10 percent, banks loan all excess reserves and the currency drain is zero. If the Fed sells 100 million of U.S. government securities to Boise Bank, the monetary base increases by
 
  A) 1 million.
  B) 10 million.
  C) 100 million.
  D) 1,000 million.
  E) 90 million.

Question 2

If a tax is imposed on a good,________.
 
  A) consumer surplus increases
  B) producer surplus increases
  C) the quantity of the good traded in the market increases
  D) the equilibrium quantity of the good in the market falls



bigsis44

  • Sr. Member
  • ****
  • Posts: 317
Answer to Question 1

C

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The effects of organophosphate poisoning are referred to by using the abbreviations “SLUD” or “SLUDGE,” It stands for: salivation, lacrimation, urination, defecation, GI upset, and emesis.

Did you know?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

For a complete list of videos, visit our video library