b. 12.3 c. 8.1 d. 9.1 1)34. Refer to Table 32-1. If the Fed requires a reserve r

Question

b. 12.3 c. 8.1 d. 9.1 1)34. Refer to Table 32-1. If the Fed requires a reserve ratio of 6 percent, then what quantity of excess reserves does the Bank of Springfield now hold? a. $9,600 b. $10,800 c. $10,200 d. $9,000 35. In an open economy, an increase in national saving the equilibrium domestic real interest rate and the quantity of net capital inflows and the quantity of domestic investment a. increases; decrease; decreases b. increases; increase; increases c. decreases; decrease; increases d. increases; increase; decreases

Explanation / Answer

a) An increase in the national saving will decrease the interest rate in the economy and increase the investment. It will also reduce the net capital outflow i.e. consumption of foreign goods in form of imports.

The answer is "C".

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.