Assume an economy with a single bank, no excess reserves, no savings accounts, and no currency held by the public. With a required reserve ratio of .4, the demand deposit expansion multiplier is
A) 20.
B) 10.
C) 4.
D) 2.5.
D
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If the federal government tries to make fiscal policy sustainable by increasing seigniorage, the economy would experience ________ and will result in ________ potential GDP
A) a decrease in the growth rate of the money supply; lower B) an increase in the growth rate of the money supply; higher C) an increase in inflation; lower D) a decrease in the real interest rate; higher
Approximately what percentage of total health care spending goes toward hospital care?
a. One-tenth. b. One-fifth. c. One-fourth. d. One-third. e. One-half.
Refer to the graph below. The solid kinked demand curve would most likely be observed by a firm operating within
a. perfect competition.
b. pure monopoly.
c. an oligopoly.
d. monopolistic competition.
The government buts new weapons systems. The manufacturers of weapons pay their employees. The employees spend this money on goods and services. The firms from which the employees buy the goods and services pay their employees. This sequence of events illustrates
a) the accelerator effect. b) the multiplier effect. c) the chain effect. d) the bandwagon effect.