Assuming a required reserve ratio of 10% and the Fed purchased $1 million worth of mortgage-backed securities, make use of the simple deposit multiplier to determine how much checking deposits would change
A) increase by $1 million
B) increase by $10 million
C) decrease by $1 million
D) decrease by $10 million
A
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We say that the demand for labor is a derived demand because
A. labor is hired using the MRP = MRC rule. B. the forces of supply and demand do not apply directly to labor markets. C. we demand the product that labor helps produce rather than labor service per se. D. labor is a necessary input in the production of every good or service.
What are automatic stabilizers? How do they affect the budget deficit and/or budget surplus during a recession and during an expansion?
What will be an ideal response?
The graph shows costs and benefits of a mosquito control program, which is a public good:
a) What is the quantity of spraying that achieves efficiency? b) What is the political equilibrium if voters are well informed?
If MPP is decreasing, total output must be decreasing
Indicate whether the statement is true or false