If there were a 20% reserve requirement, how much would the deposit multiplier be?
What will be an ideal response?
Answer: 5
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Market equilibrium occurs when
A) other things remain the same. B) the market is changing rapidly. C) the quantity demanded equals the quantity supplied. D) buyers get the lowest possible price. E) everyone who wants the good gets the quantity he or she wants.
Provide two examples of a monetary incentive and two examples of non-monetary incentive, a carrot and a stick of each, that government policies use to influence behavior
What will be an ideal response?
According to the household liquidity effect, an expansionary monetary policy causes a ________ in the value of households' financial assets, causing consumer durable expenditure to ________
A) decline; rise B) rise; rise C) rise; fall D) decline; fall
Pay-as-you-go social security
A) can never improve economic welfare for everyone. B) can improve welfare for everyone if the population growth rate is large enough. C) is always inefficient. D) is not used by any countries in the world.