If the banking system has a required reserve ratio of 40 percent, then the money multiplier is:
A. 2.
B. 2.5.
C. 4.
D. 8.
Answer: B
You might also like to view...
A budget surplus occurs when ________
A) government spending exceeds tax revenue B) tax revenue exceeds government spending C) imports exceed exports D) exports exceed imports
The benefits principle is used to justify
a. sales taxes. b. gasoline taxes. c. "sin" taxes on cigarettes and alcoholic beverages. d. personal income taxes.
Which of the following statements is not correct?
a. An advantage of an in-kind transfer is that it prevents an alcoholic from spending a cash benefit on alcohol. b. An advantage of the Supplemental Security Income (SSI) program is that it benefits the sick and disabled. c. An advantage of a negative income tax program is that the poor must work to be eligible. d. Minimum wage laws result in higher unemployment among those groups of workers affected by the minimum wage.
The economy of the United States would best be classified as:
a. closed economy b. socialism c. command economy d. A market system