Assume that the currency—deposit ratio is 0.3 and the reserve—deposit ratio is 0.2. What is the money multiplier?
A) 1.5
B) 2.0
C) 2.6
D) 5.0
C
Economics
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In the first chapter of The Wealth of Nations, Smith introduces the idea of the __________, which means the way in which the work required to produce a good or service is divided into a number of tasks that are performed by different workers.
Economics
For Molly, the substitution effect of a wage increase is stronger than the income effect. In response to a wage increase, will Sally work more hours or will she work fewer hours?
Economics
The line of perfect income equality is
A. X. B. Y. C. Z. D. not shown on this graph.
Economics
What is the difference between the U.S. current account deficits of the 1980s and the 1990s?
What will be an ideal response?
Economics