Which of the following would cause the actual deposit expansion multiplier to be less than its potential?
a. the general public holding of funds in the form of currency rather than bank deposits
b. the holding of excess reserves by commercial banks
c. the general public holding of funds in the form of coins rather than bills
d. both a and b
D
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An increase in the reserve ratio
A) has an expansionary effect on the money supply. B) has a contractionary effect on the money supply. C) increases the money multiplier. D) will cause banks to make more loans.
The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
A mechanism by which buyers and sellers of labor and financial capital negotiate an exchange is a
A. brokerage. B. bond market. C. stock market. D. factor market.
According to the above table, national income is
A. $2,465. B. $2,550. C. $2,190. D. $2,750.