The money multiplier equals
a. 1/R, where R represents the quantity of reserves in the economy.
b. 1/R, where R represents the reserve ratio for all banks in the economy.
c. 1/(1+R), where R represents the quantity of reserves in the economy.
d. 1/(1+R), where R represents the reserve ratio for all banks in the economy.
b
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Explain how a firm makes an investment decision
What will be an ideal response?
Which of the following is not a major institutional investor in the stock market?
A) Mutual funds B) Pension funds C) Insurance companies D) Commercial banks
Which of the following is true of the crises experienced in the 1990s?
a. Most of the economic crises occurred in Mexico. b. Each of the countries affected by the crisis in Southeast Asia owed substantial long-term debt to foreigners. c. During this time, bank loans were a sizable fraction of GDP in all the crisis countries except Mexico. d. Stock prices dropped by an amount ranging from 21 percent in Malaysia to 35 percent in Korea. e. Exchange rate against the U.S. dollar dropped substantially in the Philippines.
Marginal profit equals the difference between marginal revenue and marginal cost
a. True b. False Indicate whether the statement is true or false