Over time, the money multiplier:
A. runs counter cyclic to the business cycle.
B. was relatively stable until 2008, when it rose dramatically.
C. was relatively stable until 2008, when it dropped dramatically.
D. has historically followed the business cycle.
Answer: C
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Which of the following correctly describes fractional reserve banking?
a. The federal government only insures a fraction of the deposits at most banks. b. Banks keep a fraction of their loans with other banks to maintain the quality of their loan portfolio. c. Banks can loan out all but a small fraction of its own money, but must hold all money deposited at the bank on reserve in bank vaults. d. Banks can loan out all but a fraction of its own money, but must hold all money deposited at the bank on reserve in bank vaults.
The greater the differences in demand elasticities of consumers within a market, the more the monopolist benefits from charging a uniform price for his product
Indicate whether the statement is true or false
A "capitalist" is someone who:
A. owns stock. B. opens a retirement account. C. holds a treasury bond. D. All of these statements are true.
According to the World View titled "Jeffrey Sachs: Big Money, Big Plans," how did Columbia University economics professor Jeffrey Sachs expect extreme poverty to be eliminated by 2025?
A. Rich nations must quadruple their foreign aid flows now, and poor nations need to be more accepting of help. B. Rich nations must double their foreign aid flows now and develop full-scale, comprehensive plans for the poor countries to reduce poverty. C. Rich nations must double their foreign aid flows now and then double them again in 10 years, while poor nations must develop full-scale, comprehensive plans for poverty reduction. D. Poor nations must develop full-scale, comprehensive plans for poverty reduction without the help of rich nations.