If the government of a country decides to increase the required reserve ratio from 10 to 12.5 percent, the value of the money multiplier will: decrease from 10 to 8.
a. increase from 1.0 to 1.2.
b. decrease from 10 to 8
c. increase from 10 to 12.
d. decrease from 12 to 10.
b
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A bank has checkable deposits of $1,000,000, loans of $600,000, and government securities of $400,000. If the required reserve ratio is 5 percent, the amount of required reserves is
A) $100,000. B) $30,000. C) $50,000. D) $80,000. E) $20,000.
Long-run economic rent or profit do not exist for fixed factors like land because
A) bidding drives up the price of the factor until no economic rent exists. B) there is no market for such factors. C) these factors have L-shaped isoquants. D) these factors will earn economic profits.
Which of the following types of firms practices price discrimination?
a. airlines b. movie theaters c. colleges d. all of the above
Consumption spending is said to make up about ______ to _______ of most countries spending.
A. 3/4, 7/8 B. 1/2, 2/3 C. 2/3, 3/4 D. 1/3, 1/2