If the money multiplier is 4, what is the required reserve ratio (RRR)?
(A) 50 percent
(B) 20 percent
(C) 2 percent
(D) 25 percent
Ans: (D) 25 percent
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Economic models must be tested with data to see if they are correct.
Answer the following statement true (T) or false (F)
The ________ is defined as the ratio of the dollar price of a basket of goods and services in the U.S., divided by the dollar price of the same basket of goods and services in a foreign county
A) real exchange rate B) ordinal exchange rate C) nominal exchange rate D) expected exchange rate
In April 2014, the money price of a carton of milk was $2.01 and the money price of gallon of gasoline was $3.63 . Calculate the relative price of a gallon of gasoline in terms of milk
What will be an ideal response?
William quits his job where he earns an annual salary of $75,000 and opens a management consulting business, charging an hourly rate of $120 . He works out of his home, converting a storeroom into an office. (Zoning restrictions prevent William from renting out the room.) Start-up costs are financed by selling $15,000 worth of bonds he inherited that were earning annual interest payments of $900
. During his first year, William incurs expenses for supplies and utilities that total $3,500 . The total cost of production in the first year equals a. $94,400 b. $79,400 c. $4,400 d. $3,500 e. $19,400