Assume that the currency-deposit ratio is 0.3 and the reserve-deposit ratio is 0.2. What is the money multiplier?
A. 1.5
B. 2.6
C. 5.0
D. 2.0
Answer: B
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The impact of an increase in the wage rate on labor supply will be represented by ________, assuming all else equal
A) a rightward shift of the labor supply curve. B) a leftward shift of the labor supply curve. C) an upward movement along the labor supply curve. D) a downward movement along the labor supply curve.
Mergers often do not lead to value creation
Indicate whether the statement is true or false
Which of the following actions by the Fed would increase the money supply?
a. Reducing the required reserve ratio. b. None of the answers are correct. c. Selling government bonds in the open market. d. Increasing the discount rate.
The Oh So Humble Bakery sells 300 muffins at a price of $1 per muffin. Its explicit costs for producing 300 muffins are $250. The Oh So Humble Bakery's economic profits are
A. $35. B. $50. C. $250. D. indeterminate from this information.