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Author Question: Excess reserves are the A) amount of reserves held over what is desired. B) amount of reserves ... (Read 164 times)

haleyc112

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on: Jun 29, 2018
Excess reserves are the
 
  A) amount of reserves held over what is desired.
  B) amount of reserves banks keep in their vaults.
  C) amount of reserves a bank holds at the Fed.
  D) amount of reserves the Fed requires banks to hold.
  E) same as the required reserves.

Question 2

The multiplier effect
 
  A) explains what causes an expansion.
  B) has no impact on equilibrium expenditure.
  C) reinforces the negative effects of any reduction in spending.
  D) explains what causes a recession.
  E) explains how the economy recovers from a recession.


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reelove4eva

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Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

C


haleyc112

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Reply #2 on: Jun 29, 2018
Thank you :)


reelove4eva

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Reply #3 on: Jun 29, 2018
Happy to help you


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