« previous next »

Author Question: Suppose Kaylee withdraws 4,000 from her bank. If the reserve ratio is 25 percent, then this will ... (Read 105 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?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Did you know?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

Did you know?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

Did you know?

Vital signs (blood pressure, temperature, pulse rate, respiration rate) should be taken before any drug administration. Patients should be informed not to use tobacco or caffeine at least 30 minutes before their appointment.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Independent assortment of chromosomes at meiosis explains Mendel’s ratio Independent assortment of chromosomes at meiosis explains Mendel’s ratio
The oxygen isotope curve illustrates the ratio between 16O and 18O. The oxygen isotope curve illustrates the ratio between 16O and 18O.
Harlem’s Promise Academy has a record of graduating and sending to college more than 90 percent ... Harlem’s Promise Academy has a record of graduating and sending to college more than 90 percent ...
Example of Reconciling a Bank Statement Cont. Example of Reconciling a Bank Statement Cont.
How to solve any percent efficiency problem How to solve any percent efficiency problem
Total allowable and actual catch, Grand Bank Atlantic Cod 1959 -2012 Total allowable and actual catch, Grand Bank Atlantic Cod 1959 -2012
Video: Electromagnetic Spectrum, Chlorophyll and Pigment & Light

For a complete list of videos, visit our video library