If reserves increase by $5 million, what is the difference in the resulting change in checkable deposits when the required reserve ratio is 12.5 percent compared to when it is 10 percent?
A) $12.5 million
B) $10 million
C) $2.5 million
D) $100 million
B
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The market demand curve shows the relationship between the price and the quantity demanded by all consumers, everything else being equal
Indicate whether the statement is true or false
Which of these measures the responsiveness of the quantity of one good demanded to an increase in the price of another good?
A) price elasticity. B) income elasticity. C) cross-price elasticity. D) cross substitution elasticity.
Mathematically, the value of the spending multiplier in terms of the marginal propensity to consume (MPC) is given by the formula:
a. MPC ? 1. b. (MPC ?1) / MPC. c. 1 / MPC. d. 1 / (1 ? MPC).
If the marginal product of labor is less than the average product of labor, then the
A. marginal product must be increasing. B. marginal product must be decreasing. C. average product must be decreasing. D. Both B and C