A potential money multiplier of 10 means that
a. excess reserve requirements are 90 percent
b. a new deposit of $1,000 results in new demand deposits of $10,000
c. the legal reserve requirement is 10 percent
d. there can be no more lending available
e. the initial deposit must necessarily be $10
C
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A motorcycle manufacturer produced 8,000 motorcycles, but sold only 6,500 of them. We would classify the remaining 1,500 motorcycles as
A. a loss to the firm. B. a factor of production. C. part of the firm?s tangible capital. D. part of the firm?s intangible capital.
Describe the changes in the variables that will cause supply for a product to increase, shifting the supply curve down and to the right
What will be an ideal response?
Which of the following is a fixed cost for ACME manufacturing?
A) wages paid to labor B) the annual fire and theft insurance premiums C) the utility bill D) raw material costs E) the cost of shipping its product to market
If government regulators force a natural monopoly to produce where price equals marginal cost, the monopoly will earn
a. a "fair return" b. positive economic profit c. zero economic profit d. negative economic profit e. greater economic profit than if it were unregulated