Author Question: An increase in the reserve requirement from 20 percent to 25 percent is most likely to: a. reduce ... (Read 50 times)

MirandaLo

  • Hero Member
  • *****
  • Posts: 538
An increase in the reserve requirement from 20 percent to 25 percent is most likely to:
 a. reduce total deposits in the banking system.
  b. reduce excess reserves and the deposit expansion multiplier.
  c. increase the money supply.
  d. reduce the amount of reserves required.
  e. increase total deposits and the deposit expansion multiplier.

Question 2

Ceteris paribus, if negotiations lead to lower wages for airline employees, what will be the result in the market for air travel?
 a. an increase in equilibrium price and an increase in equilibrium quantity
  b. an increase in equilibrium price and a decrease in equilibrium quantity
  c. a decrease in equilibrium price and an increase in equilibrium quantity
  d. a decrease in equilibrium price and a decrease in equilibrium quantity



mohan

  • Sr. Member
  • ****
  • Posts: 362
Answer to Question 1

b

Answer to Question 2

c



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Did you know?

Signs and symptoms of a drug overdose include losing consciousness, fever or sweating, breathing problems, abnormal pulse, and changes in skin color.

Did you know?

Inotropic therapy does not have a role in the treatment of most heart failure patients. These drugs can make patients feel and function better but usually do not lengthen the predicted length of their lives.

Did you know?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

Did you know?

The term bacteria was devised in the 19th century by German biologist Ferdinand Cohn. He based it on the Greek word "bakterion" meaning a small rod or staff. Cohn is considered to be the father of modern bacteriology.

For a complete list of videos, visit our video library