Plain folks, hope this helps.
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False you should always worry about the consequences that effected everyone else decision because it could lead to other missleading decision that could cause alot of people to get in trouble.
Answer: were less likely than those individuals who had heard "smashed into each other" to recall that they had seen broken glass
Answer:
The Fed can increase the monetary base using one of these two tools:
- Open-market operations: if the Fed wants to increase the money supply, it can buy government bonds. The money the Fed prints to buy these bonds increase the monetary base.
- Reserve requirements: the Fed can increase the reserve-deposit ratio for commercial banks. In other words, commercial banks will have to keep more reserves as a percentage of the deposits they hold, and this increases the monetary base.