If the Desired Reserve Ratio Increases, Then

question 31

Multiple Choice

If the desired reserve ratio increases, then

• A)banks are able to make more loans.
• B)the Fed has supplied banks with more reserves.
• C)bank customers become more willing to make deposits in banks.
• D)banks' desired reserves increase and their excess reserves decrease.
• E)banks can buy more government securities.

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Definitions:

Mead

Refers to George Herbert Mead, a sociologist and philosopher known for his work on the development of self and the social process of symbolic interactionism.

Subjective Side

Refers to aspects of experiences, behaviors, or perceptions that are influenced by personal feelings, tastes, or opinions rather than by external objective reality.

Objective Side

Refers to the aspect of an issue or situation that can be quantifiably measured or verifiably observed, as opposed to subjective perceptions.

Lev Vygotsky

A Soviet psychologist best known for his theories on cognitive development, particularly the social development theory of learning.