For any value of the required reserve ratio (RRR), the demand deposit multiplier is
a. 1/RRR
b. 1 - (1/RRR)
c. RRR multiplied by the change in reserves
d. 1 - RRR
e. (1/RRR) -1
A
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Roughly 160 million people in the United States hold jobs.
Answer the following statement true (T) or false (F)
Which two goods will most likely have indifference curves that are straight lines?
A) blue and red balloons B) left and right shoes C) pizza and hair spray D) beef and chicken
Which of the following is more likely to be the price elasticity of demand for the snake bite treatment antivenom?
A. Highly inelastic B. Unit elastic C. Elastic D. Perfectly elastic
The reason why inflation reduces the value of the multiplier is that part of the change in demand is
a. absorbed by price changes. b. saved rather than spent. c. matched by changes in supply. d. matched by changes in income.