What is the money multiplier?

a) A measure of the potential or maximum amount the money supply can increase when new deposits enter the system.
b) A measure of the amount of excess reserves banks hold.
c) A measure of the amount of total reserves banks hold.
d) A measure of the maximum amount of savings that can happen when account holders deposit money in a bank account.


Ans: a) A measure of the potential or maximum amount the money supply can increase when new deposits enter the system.

Economics

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What are the two basic reasons inside lags occur?

What will be an ideal response?

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Net exports usually ________ when the U.S. economy is in a recession and ________ when the U.S. economy is expanding

A) increase; increase B) decrease; decrease C) decrease; increase D) increase; decrease

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If it is not profitable for more than one firm to be in an industry, we have an example of

A) monopoly due to ownership of key resources. B) monopoly due to governmental entry restrictions. C) monopoly due to economies of scale. D) pure competition.

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Figure 11-1 The Red Cross is virtually the only operator of blood banks in the United States. In Figure 11-1 are the demand and cost curves facing the Red Cross blood bank. If the Red Cross were to set price and quantity at the level that it would obtain in the long run in a competitive industry, how much blood would it sell?

A. OA B. OB C. OD D. OC

Economics