Suppose you find $1000 in your attic and decide to deposit it all into your local bank, which must hold 20% as required reserves. The deposit expansion multiplier suggests that this $1,000 "injection" of new money will, in reality, most likely
A) increase the money supply by more than $1,000.
B) increase the money supply by less than $1,000.
C) increase the money supply by exactly $1,000.
D) increase the money supply by exactly $5,000.
A
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The bowed shape of the traditional production possibilities curve reflects the
A) negative side effects of economic growth. B) fact that not all resources are equally well-suited to producing all goods. C) costs of unemployment. D) problems of inequality.
Assume Mimi's budget constraint is shown in the graph shown. If earrings cost $7, then hairbands must cost:
A. $3.50.
B. $7.
C. $5.25.
D. $4.
If Sam, the Pizza Man, lowers the price of his pizzas from $6 to $5 and finds that sales increase from 400 to 600 pizzas per week, then the demand for Sam's pizzas in this range is:
A. inelastic. B. elastic. C. unit elastic. D. inferior.
Artificial intelligence (AI) technologies
A. produce large volumes of data that make decision making more complicated. B. can enable individuals to make more informed decisions. C. often reveal economic relationships that do not actually exist. D. free businesses, governments, and consumers from making decisions.