If the banking system has a required reserve ratio of 20 percent, the money multiplier is
A. 1.25.
B. 5.0.
C. 0.8.
D. 0.2.
Answer: B
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If two events are perfectly negatively correlated, then
A) diversification can reduce but not eliminate risk. B) diversification can eliminate risk. C) diversification has no impact on risk. D) diversification cuts risk in half.
If you accept the big brother cause of poverty, it might be helpful if the government did less instead of more
Indicate whether the statement is true or false
The difference between the maximum price the consumer is willing to pay and the price the consumer actually pays for a product is referred to as:
a. market surplus b. market shortage c. buyer surplus d. seller surplus.
Classical economists believed that if saving were greater than investment, the interest rate would _____, causing saving to _____ and investment to _____ until the two were equal
a. rise; decrease; increase b. fall; decrease; increase c. fall; increase; decrease d. rise; increase; decrease e. fall; increase; increase