If the money multiplier is 8, the required reserve ratio is
A. 8%.
B. 12.5%.
C. 16%.
D. 20%.
Answer: B
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If the average productivity of American firms is rising more quickly than the average productivity of Indian firms, which of the following would you expect to see? (India's currency is the rupee.)
A) an increase in the value of the rupee relative to the dollar B) a decrease in the quantity demanded of Indian products relative to American products C) a decrease in the prices of Indian products D) an increase in the quantity demanded of Indian products relative to American products
If planned aggregate expenditure is above potential GDP and planned aggregate expenditure equals GDP, then
A) the economy is in an expansion. B) actual inventory investment will be less than planned inventory investment. C) actual inventory investment will be greater than planned inventory investment. D) the economy is at full employment.
A & H Deliveries earned about $500,000 less than usual this year because of a downturn in the economy. The company also had to pay $200,000 less in taxes this year because their income and payroll were smaller. The decrease in taxes A & H had to pay during the downturn is an example of _____.
a. the crowding-out effect b. automatic stabilization c. discretionary policy d. a recognition lag
Which of the following is most likely a topic of discussion in macroeconomics?
A. an increase in the price of a hamburger B. a decrease in the production of DVD players by a consumer electronics company C. an increase in the wage rate paid to automobile workers D. a decrease in the unemployment rate