Other things equal, when the Fed raises the reserve requirement, ...

[sam.t96]

Other things equal, when the Fed raises the reserve requirement, the banking system's excess reserves will fall, the deposit expansion multiplier will decline, and the money supply will decrease.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Which of the following observations would be consistent with the imposition of a binding price ceiling on a market? After the price ceiling becomes effective,
 a. a smaller quantity of the good is exchanged.
  b. a smaller quantity of the good is demanded.
  c. a larger quantity of the good is supplied.
 d. the price rises above the previous equilibrium.

[ririgirl15]

Answer to Question 1

True

Answer to Question 2

a

[sam.t96]

Excellent

[shewald78]

TYSM