When the required reserve ratio is 20 percent, the money multiplier is:
a. 0.2.
b. 1.2.
c. 2.
d. 2.5.
e. 5.
e
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Which of the following correctly describes a final good?
i. A final good is bought by its final consumer. ii. A final good can be used by a firm as a component of another good or service. iii. Investment goods cannot be a final good. A) ii and iii B) i and iii C) i and ii D) i, ii and iii E) i only
When a monopolist chooses the output that maximizes profits, we know that MR = MC and also that P > MR. This is inefficient because a. the monopolist is not minimizing costs
b. the monopolist is the only producer in the market. c. the monopolist fails to make transactions where the marginal benefit is greater than the marginal cost. d. there are entry barriers.
Which of the following is most likely to influence a household’s level of consumption?
a. total investment spending b. government spending c. amount of disposable income d. ratio of exports to imports
Economic theory easier to explain or predict government policies when
What will be an ideal response?