If the reserve ratio is 5 percent, then the money multiplier is approximated to be:
A. 10.
B. 5.
C. 2.
D. 20.
Answer: D
You might also like to view...
Refer to the scenario above. What is the present value of the gift voucher for Jim?
A) 12 utils B) 22.5 utils C) 90 utils D) 180 utils
The income effect of a price change refers to the change in the quantity demanded of a good that results from a change in the price of a substitute product
Indicate whether the statement is true or false
If a monopolist sets a low price to discourage potential competitors from entering the market, it is referred as
A) price skimming. B) predatory pricing. C) penetration pricing. D) limit pricing.
If the reserve ratio is 6 percent, then $9,000 of additional reserves can create up to
a. $159,000 of new money. b. $54,000 of new money. c. $150,000 of new money. d. $141,000 of new money.