If the money multiplier is approximated to be 4, then the reserve ratio must be:
A. 25 percent.
B. 4 percent.
C. 5 percent.
D. 2.5 percent.
Answer: A
You might also like to view...
The marginal propensity to consume (MPC) is the
A. percentage by which disposable income increases when consumption increases by 1%. B. percentage by which consumption increases when disposable income increases by 1%. C. amount by which disposable income increases when consumption increases by $1. D. amount by which consumption increases when disposable income increases by $1.
Since 1945, national defense expenditures as a percentage of GDP have _____
a. fallen from 41 percent to 3.7 percent b. fallen from 32.1 percent to 20.1 percent c. fallen from 62.3 percent to 11.5 percent d. fallen from 50.5 percent to 9.6 percent
The profit-maximizing price of the monopolist compared to the perfectly competitive industry in the above figure are, respectively
A) P1 and P3. B) P1 and P5. C) P1 and P2. D) P2 and P5.
Which of the following U.S. antitrust laws prohibits mergers through the acquisition of a firm's assets if the merger would lessen competition?
a. Clayton Act. b. Robinson-Patman Act. c. Celler-Kefauver Act. d. Sherman Antitrust Act.