Assuming all excess reserves are loaned out, if the reserve ratio is 8 percent, the money multiplier will be equal to:
A. 2.
B. 8.
C. 12.5.
D. 16.67.
Answer: C
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A. one-half pie. B. four pies. C. six pies. D. two pies.
In the United States, each bank panic in the late nineteenth and early twentieth centuries was accompanied by
A) inflation. B) deflation. C) a depression. D) a recession.
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A. increase; decrease B. decrease; decrease C. increase; increase D. decrease; increase
In a monopolistic industry, there is(are) ________ firm(s) and ________.
A. many; entry of new firms is blocked B. a single; entry of new firms is blocked C. many; free entry of new firms D. a single; free entry of new firms