If the Target Reserve Ratio in the Banking System Is

question 106

Multiple Choice

If the target reserve ratio in the banking system is 10%,there is no cash drain,and there are no excess reserves,a new deposit of $1 will lead to an eventual expansion of the money supply of

• A)$0.01.
• B)$0.10.
• C)$1.00.
• D)$10.00.
• E)$100.00.

Understand the concept and implications of the principal-agent problem in both private and public sectors.

Evaluate the efficiency of resource allocation in majority voting and the paradox of voting.

Describe the median-voter model and its implications for political outcomes and public service provision.

Grasp the concept and implications of logrolling in political decision-making.

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Definitions:

Negative Stimulus

An unfavorable event or object that causes a decrease in a specific behavior or reaction.

Positive Reinforcement

A behavioral technique that involves providing a reward to encourage the repetition of a desired behavior.

Undesirable Behavior

Actions or conduct that are considered unacceptable or inappropriate within a specific context, often leading to negative consequences.

Extinction

In a behavioral context, extinction is the process of reducing or eliminating a learned response, typically by no longer providing the reinforcement that maintained the behavior.