Author Question: An increase in the reserve requirement from 20 percent to 25 percent is most likely to: a. reduce ... (Read 46 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?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

Did you know?

Certain rare plants containing cyanide include apricot pits and a type of potato called cassava. Fortunately, only chronic or massive ingestion of any of these plants can lead to serious poisoning.

Did you know?

Elderly adults are living longer, and causes of death are shifting. At the same time, autopsy rates are at or near their lowest in history.

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

For a complete list of videos, visit our video library