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
Risks of infectious disease increase in (a) high-density agricultural populations compared to (b) lo
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A debt payment of $7500 is due in 24 months. If money is worth 7.2% p.a. compounded quarterly, ...