You are given the following information on the banking system
Reserve requirement rr = 0.08
Currency-deposit ratio c = 0.10
Excess reserve ratio e = 0.05
Compute the simple deposit and money multipliers.
Simple deposit multiplier 1/rr = 1/0.08 = 12.5
Money multiplier (c + 1 )/(c + rr + e) = (0.10 + 1 )/(0.10 + 0.08 + 0.05 ) = 4.78
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The gross replacement rate is
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All of the following entry methods provide firms with familiarity with a foreign market, expect which one?
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A decrease in disposable income causes a shift in the consumption function
a. True b. False Indicate whether the statement is true or false