The simple deposit multiplier is the ratio of the amount of
A) new reserves created by the banks to the amount of deposits.
B) new reserves created by the banks to the amount of loans.
C) deposits created by the banks to the amount of new reserves.
D) loans issued by the banks to deposits created by the banks.
Answer: C
You might also like to view...
From 2002 to 2014, employment a. declined in health care and food services
b. declined in health care and increased in food services. c. declined in food services and increased in health care. d. increased in health care and food services.
Which of the following is an example of a good with elastic supply in the short run?
(A) Plums (B) Large hand-made rugs (C) Passenger airplanes (D) Sandwiches
In 2018, the CPI was 80. In 2019, the CPI was 90. What was the inflation rate between 2018 and 2019?
What will be an ideal response?
Suppose the government increases government spending. Which of the following will tend to occur as a result of this policy in a Keynesian model?
A. an inflationary gap B. a movement along the short-run aggregate supply curve C. demand-pull inflation D. all of these