A reserve requirement of 50 percent means a money multiplier of:
a. 0.50.
b. 2
c. 5.
d. 50.
b
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Which of the following appears on the liability side of the Fed's balance sheet?
a. Federal Reserve notes. b. U.S. government securities. c. Loans to banks. d. All of these.
After taking out a one year loan with an annual interest rate of 10 percent, Tommy pays $3,300 back to the bank. The principal of the loan must be ___________ and the interest payment must be ___________.
A. $3,000; $300 B. $3,300; $300 C. $300; $3,300 D. $300; $3,000
Suppose a tax of $5 per unit is imposed on a good. The supply curve is a typical upward-sloping straight line, and the demand curve is a typical downward-sloping straight line. The tax decreases consumer surplus by $10,000 and decreases producer surplus by $15,000 . The deadweight loss of the tax is $2,500 . The tax decreased the equilibrium quantity of the good from
a. 6,500 to 5,500. b. 5,500 to 4,500. c. 5,000 to 3,000. d. 6,000 to 4,000.
The marginal productivity principle demonstrates that distribution under a capitalist system is ethically valid.
Answer the following statement true (T) or false (F)