Assuming initially that the required reserve ratio = 10%, the currency-deposit ratio = 40%, and the excess reserve ratio = 0, an increase in the currency-deposit ratio to 50% causes the M1 money multiplier to ________, everything else held constant
A) increase from 2.5 to 2.8
B) decrease from 2.8 to 2.5
C) increase from 2.33 to 2.8
D) decrease from 2.8 to 2.33
B
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An increase in inflation leads to higher ________
A) output B) spending C) real interest rate D) all of the above E) none of the above
If the poverty threshold is set at 60 percent of median income, and if median income were $20,000 . then people in poverty earn less than
a. $32,000 b. $20,000 c. $12,000 d. $6,000 e. $24,00
Figure 7-8
Of the graphs in Figure 7-8, which resembles marginal cost?
a.
1
b.
2
c.
3
d.
4
If domestic saving is greater than domestic investment, then a country will have a ________ and positive net capital ________.
A. trade deficit; inflows B. trade surplus; outflows C. trade deficit; outflows D. trade surplus; inflows