When bankers hold excess reserves:
A. The size of the monetary multiplier increases
B. The money-creating potential of the banking system increases
C. The money-creating potential of the banking system decreases
D. There is no change in the money-creating potential of the banking system
C. The money-creating potential of the banking system decreases
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A proportional tax is a tax whose rate increases as the tax base widens
a. True b. False Indicate whether the statement is true or false
How does the United States compare to other nations on a per capita scale as far as government production and taxation?
If an asset cannot be sold quickly for cash without much loss of value, it is called:
A. illiquid. B. durable. C. liquid. D. fixed.
If a perfectly competitive firm finds that price is less than average variable cost, it should:
A. increase output until price equals marginal cost. B. decrease output until price equals marginal cost. C. shut down immediately. D. not adjust output if marginal cost equals price.