If the reserve ratio is 20 percent, then the money multiplier is approximated to be:
A. 20.
B. 5.
C. 10.
D. 2.
B. 5.
You might also like to view...
A subgame-perfect equilibrium is a Nash equilibrium in which no player can make himself better off by changing his decision at any decision node
Indicate whether the statement is true or false
The combined effect of changes in government purchases and net taxes can be determined by adding their individual effects
a. True b. False Indicate whether the statement is true or false
If the real interest rate were above the equilibrium rate, there would be a shortage of loanable funds
a. True b. False Indicate whether the statement is true or false
Modern terrorism overturns the central assumption of the Westphalian system that says only
a. democracies can provide a lasting form of power. b. weapons of mass destruction actually maintain peace. c. states have the military force to create serious security threats. d. economic inequality pits private citizens against one another.