If the required reserve ratio is 0.2, the demand deposit multiplier is

a. 0.2
b. 0.8
c. 1.25
d. 5.0
e. 8.0


D

Economics

You might also like to view...

In time series, the definition of causal effects

A) says that one variable helps predict another variable. B) does not make much sense since there are not multiple subjects. C) assumes that the same subject is being given different treatments at different points in time. D) requires panel data.

Economics

Public sector investment projects are economically justifiable only when:

a. the discounted social benefits exceed the discounted social costs b. the internal rate of return exceeds the social discount rate c. the benefit-cost ratio exceeds zero d. a and b only e. a, b, and c

Economics

Maurice Richard loves to play hockey. He would play the minor leagues and the major leagues with equal gusto. Suppose he earned $35,000 playing for the minor league Urbana Tigers and "gets the call" from the Dallas Stars, a major league team. He excitedly tells his wife, an economist, that his wage is now $379,000 (that's the contract he signed) and she informs him that his wage-related rent is

a. $344,000 b. $379,000 c. $35,000 d. $414,000 e. $0 because he signed the "wage" contract

Economics

Which statement is true?

A. Russia has embraced capitalism at a much faster rate than China. B. The Russian government today is moving much closer to central planning than when the country was part of the Soviet Union. C. The standard of living in Russia is higher than that of the United States. D. None of the statements are true.

Economics