If people never withdrew money, how much money could the banking system create given a new amount of deposits, assuming that excess reserves were zero?
A. zero
B. as much as the new deposits
C. the amount of new deposits multiplied by the reserve ratio
D. the amount of new deposits multiplied by the money multiplier
Answer: D
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A constant contributor to labor productivity growth during the entire 1948-2000 period was
a. capital formation. b. technological change. c. labor force growth. d. government spending.
The price of a currency will decrease when quantity demanded is less than quantity supplied
a. True b. False Indicate whether the statement is true or false
Logrolling occurs when
A. voters are limited to voting on bundles of goods. B. congressional representatives trade votes. C. lumberjacks roll logs downhill to their trucks. D. voters are uninformed about issues and thus simply vote with a given party.
Refer to the graph shown. At point D demand is:
A. elastic. B. perfectly elastic. C. unit elastic. D. inelastic.