When banks reduce the reserve ratio, the potential money multiplier
A. sometimes increases, and sometimes decreases depending on the rate of inflation.
B. decreases.
C. increases.
D. remains unchanged.
Answer: C
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Tunitra consumes at a point on her budget line where her marginal rate of substitution exceeds the magnitude of the slope of her budget line. As Tunitra moves toward her consumer equilibrium point, she will move to a
A) lower budget line. B) higher budget line. C) lower indifference curve. D) higher indifference curve.
Which of the following is a barrier to economic growth in low-income countries?
a. A shortage of labor b. A declining population c. Lack of investment in research and development d. Lack of natural resources e. An increasing amount of savings
Trade creation allows consumers access to more goods at a lower price than would have been possible without integration.
a. true b. false
A right-to-work law is
A) a federal law making the closed shop illegal. B) a federal law making the union shop illegal. C) a state law making the union shop illegal. D) a state law making the open shop illegal.