The required reserve ratio is the:
a. actual amount of reserves that banks must hold.
b. excess amount of reserves that a bank must hold.
c. minimum amount of reserves the Fed requires a bank to hold.
d. total amount of reserves that banks hold at all times.
e. maximum amount of reserves that banks can hold to remain liquid.
QUESTION 2If an economy's population grows at 3 percent and GDP grows at 4 percent, then:
a. per capita real GDP is declining.
b. the economy's standard of living is decreasing.
c. per capita real GDP is negative.
d. per capita real GDP is growing.
e. the economy is experiencing unemployment.
QUESTION 3In an economy where nominal incomes adjust equally to changes in the price level, we would expect the long-run aggregate supply curve to be:
a. vertical.
b. horizontal.
c. unit elastic.
d. negatively sloped.
e. positively sloped.
QUESTION 4If an economy's population grows at 3 percent and real GDP grows at 3 percent, then:
a. per capita real GDP is declining.
b. the economy's standard of living is increasing.
c. per capita real GDP is negative.
d. per capita real GDP is constant.
e. the economy is experiencing unemployment.
QUESTION 5The required reserve ratio is:
a. the minimum amount of reserves the Fed requires a bank to hold.
b. the interest rate that the Fed charges banks who borrow from it.
c. the interest rate on loans made by banks to other banks.
d. the maximum percentage of the cost of a stock that can be borrowed from a bank, with the stock offered as collateral.
e. an appeal by the Fed to banks, asking for voluntary compliance with the Fed's wishes.
QUESTION 6In the long run, an increase in aggregate demand causes the price level to _______ and the long-run aggregate supply curve to _____________.
a. decrease; decrease
b. increase; increase
c. decrease; remain unchanged
d. increase; remain unchanged
Quick Reply
