Author Question: An increase in the reserve requirement from 20 percent to 25 percent is most likely to: a. reduce ... (Read 45 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?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Did you know?

The newest statin drug, rosuvastatin, has been called a superstatin because it appears to reduce LDL cholesterol to a greater degree than the other approved statin drugs.

Did you know?

Elderly adults are at greatest risk of stroke and myocardial infarction and have the most to gain from prophylaxis. Patients ages 60 to 80 years with blood pressures above 160/90 mm Hg should benefit from antihypertensive treatment.

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

Did you know?

To combat osteoporosis, changes in lifestyle and diet are recommended. At-risk patients should include 1,200 to 1,500 mg of calcium daily either via dietary means or with supplements.

For a complete list of videos, visit our video library