Which of the following is the relationship between the required reserve ratio (RRR) and the demand deposit multiplier?
a. The demand deposit multiplier = 1/RRR
b. The demand deposit multiplier = RRR ? change in reserves
c. The demand deposit multiplier = 1/(1 + RRR)
d. RRR = demand deposit multiplier
e. The demand deposit multiplier = 1/(1 - RRR).
A
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Why did some of the formerly Communist countries of Eastern Europe have inflation rates over 100%, while others didn't? Which factor was more important in explaining the differing inflation rates, real money demand or nominal money supply? Why did
the countries with high inflation rates allow inflation to get so high?
The number of people officially unemployed is not the same as the number of people who can't find a job because:
a. the armed forces is included. b. some people have jobs but continue to look for a better one. c. some people who can't find a job become discouraged and quit looking. d. none of these.
Fixed exchange rates serve as a constraint on inflationary government policies
a. True b. False Indicate whether the statement is true or false
Stagflation is caused by
a. a negative supply shock. b. a positive supply shock. c. a negative demand shock. d. a positive demand shock. e. none of the above.