If the Reserve Ratio Is 10%, and Banks Do Not

question 223

Multiple Choice

If the reserve ratio is 10%, and banks do not hold excess reserves, when the Fed purchases $10 million of government bonds, bank reserves

• A) increase by $10 million and the money supply could eventually increase by $10 million.
• B) decrease by $10 million and the money supply could eventually decrease by $100 million.
• C) increase by $10 million and the money supply could eventually increase by $100 million.
• D) decrease by $10 million and the money supply could eventually decrease by $10 million

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Definitions:

NLRA

The National Labor Relations Act, a foundational statute in United States labor law that protects the rights of employees to engage in collective bargaining and other union activities.

Corporate Campaign

A strategy used by labor unions to put pressure on a company by mobilizing public, financial, and political support to achieve negotiating aims.

NFL Fans

Individuals who enthusiastically follow and support National Football League teams, often showing their loyalty through attending games, watching broadcasts, and purchasing merchandise.

Intermittent Strike

A form of industrial action where employees strike for short periods of time, unpredictably, making it harder for employers to prepare alternative strategies.