The money multiplier _______
A. increases if banks increase their desired reserve ratio
B. increases if the currency drain ratio increases
C. is 1 if the desired reserve ratio equals the currency drain ratio
D. decreases if banks increase their desired reserve ratio
D If banks increase their desired reserve ratio, they will make fewer loans, which decreases the size of the money multiplier.
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If your MPC is 0.5, then when your disposable income increases by $100, your consumption expenditure increases by
A) $200. B) $100. C) $95. D) $50. E) $5.
Suppose an influenza pandemic were to significantly decrease the population of a country. We would predict a decrease in the marginal product of land in that country
a. True b. False Indicate whether the statement is true or false
John Nash shared the Nobel Prize in Economics with:
A. John Harsanyi and Reinhard Selton. B. Reinhard Selton. C. Robert Auman and Reinhard Selton. D. Milton Friedman.
If goods X and Y are complements, the
a. quantities demanded of X and Y tend to move in opposite directions. b. quantities demanded of X and Y tend to move in the same direction. c. prices of X and Y tend to move in the same direction. d. supply curves for X and Y tend to move in the same direction.