The maximum potential money multiplier is equal to
A) one minus the reserve ratio B) the reserve ratio.
C) the inverse of the required reserve ratio. D) the number of dollars on reserve.
C
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Deadweight loss from the imposition of a price floor increases as consumer demand becomes more price elastic.
Answer the following statement true (T) or false (F)
Refer to Scenario 25-1. M2 in this simple economy equals
A) $3,000. B) $8,000. C) $14,000. D) $21,000.
The Federal Constitution, like the laws under English rule, permitted the U.S. government to
(a) impose taxes to pay for government services and national defense. (b) regulate commerce with other countries. (c) create money and regulate its value. (d) do all of the above.
Answer the following question based on the information given below: Deposits at the central bank = 400 U.S. Government Securities = 700 Checking Deposit = 1,800 Loans = 800 Stockholder's Equity = 70 Other Assets = 450 Other Liabilities = 380 Borrowing from the central bank = 250 Cash in the Vault = 150 If the reserve requirement is 10%, the level of excess reserves equals:
a. $495 b. $370 c. $300 d. $550 e. Cannot be determined with this information.