Suppose you find $1000 in your attic and decide to deposit it all into your local bank, which must hold 20% as required reserves. The deposit expansion multiplier suggests that this $1,000 "injection" of new money will most likely
A) increase the money supply by a little more than $1,000.
B) increase the money supply by a little less than $1,000.
C) increase the money supply by only $1,000.
D) increase the money supply by $5,000.
D
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Which of the following is a result of scarcity?
a. Costs are incurred in making choices. b. We attempt to utilize our resources as efficiently as possible. c. We must make choices between production possibilities. d. We are unable to produce all we would like to produce. e. All of these.
Why are inclusive property rights considered to be sources of wealth?
How does a central bank influence the lending capacity of the banks?
Market clearing prices in a market system act as
A. a way for producers to advertise. B. a legally determined rationing device. C. a direct measure of resource costs. D. a signaling device.