In a simplified banking system, the money multiplier falls as the required reserve ratio rises
a. True
b. False
Indicate whether the statement is true or false
True
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A bank can actually create money by
a. lending its required reserves. b. ordering newly printed money from the Fed. c. lending its excess reserves. d. None of these.
When the economy enters a recession, automatic stabilizers create:
A. higher taxes. B. more discretionary spending. C. budget deficits. D. budget surpluses.
The demand curve will be kinked if rival oligopolists
A. Match both price increase and price reductions. B. Do not match price changes at all. C. Match price increases but not price reductions. D. Match price reductions but not price increases.
Have unions been successful at raising wages for their members? What about raising wages for all workers?
What will be an ideal response?