The value of the deposit multiplier is 1 divided by the required reserve ratio.
Answer the following statement true (T) or false (F)
True
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The sale of government securities by the Fed will cause
a. a decrease in both the monetary base and the money supply. b. an increase in both the monetary base and the money supply. c. an increase in the monetary base but no change in the money supply. d. a decrease in the monetary base but no change in the money supply.
How can the Fed increase the money supply? How can the Fed decrease the money supply? Be specific.
What will be an ideal response?
The Latin phrase ceteris paribus means that when a relationship between two variables is being studied:
A. both are treated as unpredictable. B. neither of those two variables is allowed to change. C. all other variables are held fixed. D. we recognize that some factors are unknown.
Under monopsony, the marginal factor cost of a worker is equal to
A) the additional worker's wage rate only. B) the additional worker's wage rate plus the increase in the wages of all other existing workers. C) the increase in the wages of all other existing workers. D) the difference between the worker's wage rate and the lower wage rate received by workers who have already been hired.