If bankers become more uncertain regarding future deposits and withdrawals and choose to hold more excess reserves against deposits, the money multiplier will increase
Indicate whether the statement is true or false
FALSE
You might also like to view...
Suppose that the following table represents all of the possible investments in the economy. If the nominal interest rate is six percent, what is the total amount of investment in the economy? (Note: The Returns are for one period later.)
Investment Cost Returns A $100 $105 B 300 321 C 200 216 D 50 55 E 400 416
Privatization of government agencies:
A. has rarely occurred since the 1890s. B. has become less popular since the 1980s. C. has become more popular since the 1980s. D. happens more frequently during recessions.
Natural disasters (such as the 2011 earthquake and tsunami in Japan) are examples of an adverse supply shock, which result in the SRAS curve shifting leftward
Indicate whether the statement is true or false
According to economist Jean-Pierre Dube, a 10 percent increase in the price of a twelve-pack of Mountain Dew will lead to a ______ percent increase in the sales of twelve-packs of Pepsi.
a. 10 b. 7.7 c. –5 d. –8.2