If currency outstanding equals $500 million, checkable deposits equal $2 billion, reserves equal $200 million, and the required reserve ratio is 0.10, the money multiplier equals
A) 1.14.
B) 3.57.
C) 4.35.
D) 5.
B
You might also like to view...
When the dollar price of a British pound is $0.80, it is correct to state that an American traveling in England will receive ________ pounds per dollar
A) 1.25 B) 8 C) 80 D) 125
If fixed cost is $200,000 and variable cost is $30 per unit over the relevant range of output, when 10,000 units are produced, the average total cost will be:
a. $20. b. $30. c. $50. d. $70.
Purchasing power parity holds when the exchange rate is equal to the product of the foreign price level and the domestic price level
a. True b. False Indicate whether the statement is true or false
If the United States consumption possibilities are greater than its production possibilities, then the United States must have
A. protectionism. B. an open economy. C. autarky. D. a closed economy.