An increase in the currency drain ratio ________
A) decreases the size of the money multiplier
B) increases the size of the money multiplier
C) increases the deposits in all banks
D) decreases the size of the monetary base
E) increases the size of the monetary base
A
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Indicate whether the statement is true or false
Which of the following statements about a perfectly competitive market are TRUE?
I. The perfectly competitive industry faces an upward sloping labor supply curve. II. The individual firm in a perfectly competitive industry faces a perfectly elastic labor supply curve. A) I only B) II only C) both I and II D) neither I nor II
According to economist Milton Friedman, a major reason for macroeconomic instability is due to:
A. Tax changes by the Federal government B. Spending reductions by the Federal government C. The discretionary monetary policy of the Federal Reserve D. The issuance of bonds by the U.S. Treasury Department