Author Question: Suppose checking deposits increase by 6,000 after all rounds of the money-creation process when the ... (Read 61 times)

eruditmonkey@yahoo.com

  • Hero Member
  • *****
  • Posts: 546
Suppose checking deposits increase by 6,000 after all rounds of the money-creation process when the Fed buys 1,200 worth of U.S. government securities. This implies that the maximum value of the required reserve ratio is:
 a. 5.
 b. 0.75.
  c. 0.2.
 d. 1.2.
 e. 1.0.

Question 2

In the income-expenditure framework, if planned aggregate expenditures are greater than real gross domestic product (GDP), _____.
 a. the price level will fall
 b. consumption will fall
 c. inventories will increase
 d. inventories will decrease
 e. consumption will decrease



mjenn52

  • Sr. Member
  • ****
  • Posts: 351
Answer to Question 1

c

Answer to Question 2

d



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Russia has the highest death rate from cardiovascular disease followed by the Ukraine, Romania, Hungary, and Poland.

Did you know?

The U.S. Preventive Services Task Force recommends that all women age 65 years of age or older should be screened with bone densitometry.

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

For a complete list of videos, visit our video library