« previous next »

Author Question: Suppose Kaylee withdraws 4,000 from her bank. If the reserve ratio is 25 percent, then this will ... (Read 103 times)

savannahhooper

  • Hero Member
  • *****
  • Posts: 576
on: Jun 30, 2018
Suppose Kaylee withdraws 4,000 from her bank. If the reserve ratio is 25 percent, then this will lead to a decrease in M1 of
 
  A) 1,000. B) 4,000. C) 8,000. D) 12,000.

Question 2

Differentiate between the adaptive expectations and the rational expectations models of inflation.
 
  What will be an ideal response?


mammy1697

  • Sr. Member
  • ****
  • Posts: 341
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

The adaptive expectations model of inflation states that inflationary expectations are determined by the level of inflation in the recent past. Conversely, the rational expectations model assumes that people have highly sophisticated beliefs about inflation that rationally incorporate all the information available to them.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

savannahhooper

  • Hero Member
  • *****
  • Posts: 576
Reply #2 on: Jun 30, 2018
Correct answers!


mammy1697

  • Sr. Member
  • ****
  • Posts: 341
Reply #3 on: Jun 30, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

Did you know?

Congestive heart failure is a serious disorder that carries a reduced life expectancy. Heart failure is usually a chronic illness, and it may worsen with infection or other physical stressors.

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

Did you know?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Independent assortment of chromosomes at meiosis explains Mendel's ratio Independent assortment of chromosomes at meiosis explains Mendel's ratio
Sequential blending uses a computer to calculate the correct ratio as well as the prescribed order ... Sequential blending uses a computer to calculate the correct ratio as well as the prescribed order ...
GDP per Capita in the United States, 1870–2009 (Ratio Scale) GDP per Capita in the United States, 1870–2009 (Ratio Scale)
A Radio Telescope in Green Bank, West Virginia A Radio Telescope in Green Bank, West Virginia
A Punnett square generating the F2 ratio of the F1 x F1 cross A Punnett square generating the F2 ratio of the F1 x F1 cross
How the multiple-factor hypothesis accounts for the 1:4:6:4:1 phenotypic ratio How the multiple-factor hypothesis accounts for the 1:4:6:4:1 phenotypic ratio
Video: Mechanism of enzyme action

For a complete list of videos, visit our video library