A reserve requirement of 25 percent would mean that each dollar ...

[tatyanajohnson]

A reserve requirement of 25 percent would mean that each dollar of reserves could support ____ of demand deposits.
 a. 0.25
  b. 0.75
  c. 1.33
  d. 4.00

Question 2

If credible low-money-growth policies were continually pursued by the Fed, nominal wages and prices would eventually fall as the economic agents would expect lower inflation rates over time.
 a. True
  b. False
  Indicate whether the statement is true or false

[nikmaaacs]

Answer to Question 1

d

Answer to Question 2

True

[tatyanajohnson]

Thank you

[nikmaaacs]

No problemo