For this question, assume that individuals hold both currency and checkable deposits. The money multiplier is equal to
A) 1/c.
B) 1/[c + ?(1 - c)].
C) [c + ?(1 - c)].
D) 1/?.
E) 1/(1-c)
B
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Based on the cost data in the above table, the long-run average cost (LRAC) is lowest when output is
A) 20. B) 40. C) 80. D) Long-run average cost is constant at all levels of output.
Explain how the marginal product and average product of labor change as the labor employed increases (a) initially and (b) eventually
What will be an ideal response?
A duopoly is:
A. a strategy that benefits both firms. B. an agreement, explicit or implied, between two firms. C. an oligopoly with two firms. D. two firms agreeing to act like a joint monopolist.
Iceland can produce 32 units of food per person per year or 16 units of clothing per person per year, but Lavaland can produce 36 units of food per year or 18 units of clothing. Which of the following is true? a. Iceland has both a comparative and absolute advantage in producing food
b. Iceland has a comparative advantage, but not an absolute advantage in producing food. c. Lavaland has both a comparative and absolute advantage in producing clothing. d. Lavaland has an absolute advantage, but not a comparative advantage in producing clothing.