The required reserve ratio in an economy is 12.8 percent. If two banks, Bank A and Bank B, receive deposits of $25,000 and $37,500, respectively, then the value of the money multiplier in the economy is:
a. 10.00.
b. 12.50.
c. 6.25
d. 8.00.
d
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Bartholomeu Dias was one of the leading explorers from _____
a. England b. France c. Holland d. Portugal e. Spain
What happens if a government uses an expansionary fiscal policy to increase GDP?
a. The aggregate supply curve will shift to the right. b. The aggregate supply curve will shift to the left. c. The aggregate demand curve will shift to the left. d. The aggregate demand curve will shift to the right.
An upward-sloping labor supply curve reflects the
a. higher wage rate that must be paid to meet workers' opportunity costs b. lower wage rate that is paid to meet workers' opportunity costs c. increased willingness of firms to hire the labor supplied at increasing wage rates d. fact that not all workers are equally productive e. higher marginal productivity of the additional worker supplied
Equilibrium, in the short run, is achieved when:
a. differences in rates of return cause investors to purchase and sell currency and thereby change the spot rate of exchange. b. the government recognizes a problem and takes action to correct it. c. traders adjust their expectations to match reality. d. inflation falls to zero.