When the Reserve Requirement Is Increased

question 109

Multiple Choice

When the reserve requirement is increased:

• A) required reserves are changed into excess reserves.
• B) the excess reserves of member banks are increased.
• C) a single commercial bank can no longer lend dollar-for-dollar with its excess reserves.
• D) the excess reserves of member banks are reduced.

Explain the principle of diminishing marginal utility and its implications on consumer choices.

Interpret budget line shifts and their implications on consumer equilibrium in graphical analyses.

Describe the relationship between marginal utility, demand, and consumer choices.

Understand how the concept of indifference curves represents consumer preferences and the achievement of consumer equilibrium.

---

Definitions:

Subconscious Motives

Refers to underlying emotional or psychological impulses that influence behavior but are not consciously recognized by the individual.

Personality Psychology

Area of psychology in which the psychologists study the differences in personality among people.

Trait Perspective

A psychological viewpoint that emphasizes the description and measurement of consistent personality characteristics, or traits, as the primary means of understanding individual differences.

Other Perspectives

Other perspectives involve considering alternative viewpoints or approaches to understanding concepts, problems, or situations.