When banks hold excess reserves, the size of the money multiplier
A) is less than the simple deposit multiplier would suggest.
B) is greater than the simple deposit multiplier would suggest.
C) is equal to the size of the simple deposit multiplier.
D) becomes infinite.
A
You might also like to view...
Everyone in the neighborhood has been complaining about the deteriorating condition of the park, but nobody has cleaned it up. Why not?
A. No single person's benefit from cleaning the park exceeds that person's cost of cleaning it. B. There is an excess demand for parks in the neighborhood. C. There is an excess supply of parks in the neighborhood. D. The social benefit of cleaning the park exceeds the social cost of cleaning it.
For which of the following pairs of goods is the cross elasticity of demand positive?
A) tennis balls and tennis rackets B) videotapes and laundry detergent C) airline trips and textbooks D) beef and chicken
Other things equal, if the prices of a firm's variable inputs were to fall:
A. marginal cost, average variable cost, and average total cost would all fall. B. one could not predict how unit costs of production would be affected. C. marginal cost, average variable cost, and average fixed cost would all fall. D. average variable cost would fall, but marginal cost would be unchanged.
Voluntary exchange ________ economic efficiency because neither the buyer nor the seller would agree to a trade unless ________
A) increases; they both benefit B) increases; only one party benefits C) decreases; neither benefit D) decreases; they both benefit