The potential money multiplier gives us
A) the maximum potential change in the money supply due to a change in reserves.
B) the growth in real national income when the money supply increases.
C) the maximum potential change in the money supply due to a change in income.
D) the growth in the money supply when income increases.
A
You might also like to view...
In the figure above, real income in terms of bags of corn chips is shown by point
A) a. B) b. C) c. D) d.
The assumption that people act in their best self-interest means people
a. do what gives them the greatest benefits at the lowest costs. b. are selfish. c. do what gives them the smallest benefits at the greatest costs. d. are irrational.
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.
How did the Fed use the Federal funds rate to respond to the mortgage default crisis?
What will be an ideal response?