The money expansion process continues until there are no more:
a. required reserves in the system
b. demand deposits in the system.
c. excess reserves in the system that banks are willing to lend.
d. liabilities in the system.
e. assets in the system.
c
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A contract requiring payment of an annual premium in exchange for the payment of a future stream of payments beginning at a specified age and continuing until death is
A) whole life insurance. B) an annuity. C) term life insurance. D) variable life insurance. E) universal life insurance.
If the consumption function is expressed as C = a + mpc × YD, then "mpc" represents
A) autonomous consumer expenditure. B) the marginal propensity to consume. C) the expenditure multiplier. D) disposable income.
Let the production function be q = ALaKb. The function exhibits increasing returns to scale if
A) a + b = 1. B) a + b > 1. C) a + b < 1. D) Cannot be determined with the information given.
Which of the following is a theoretically possible value for the 80/20 ratio?
A. -1 B. 1,000 C. 0.5 D. 0