Briefly explain the process of multiple deposit creation
What will be an ideal response?
Part of the money supply process in which an increase in bank reserves results in rounds of bank loans and creation of checkable deposits and an increase in the money supply that is a multiple of the initial increase in reserves.
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A bank faces a required reserve ratio of 5 percent. If the bank has $200 million of checkable deposits and $15 million of total reserves, then how large are the bank's excess reserves?
A decline in demand in a competitive industry will result in
a. a decrease in equilibrium price b. a decline in the number of firms in the industry c. economic losses for some firms in the industry d. a decline in the equilibrium quantity e. all of the above
If the graph shown is displaying a competitive market and the market is currently offering a wage more than P*:
A. there would be a surplus of workers who want to work at that wage.
B. there would not be unemployment in the market.
C. firms would have a hard time finding workers.
D. equilibrium would be achieved.
The Phillips curve illustrates the trade-off between inflation and economic growth.
Answer the following statement true (T) or false (F)