Author Question: If banks faced a 100 percent reserve requirement, a 10,000 reduction in banking reserves would ... (Read 38 times)

Bob-Dole · **on:** Jun 30, 2018

If banks faced a 100 percent reserve requirement, a 10,000 reduction in banking reserves would decrease the money supply by:
a. 1,000,000.
b. 100,000.
c. 10,000.
d. 1,000.

Question 2

Evaluate the following statements: I. The slope of the demand curve is always equal to the elasticity of demand. II. Moving down along a downward-sloping, straight-line demand curve, the elasticity of demand falls.
a. (I) and (II) are both true.
b. (I) is true and (II) is false.
c. (I) is false and (II) is true.
d. (I) and (II) are both false.