Assuming no cash leakages and no excess reserves held by banks, a required reserve ratio of 0 percent would mean that the simple deposit multiplier is
A) 0.
B) 1.
C) 10.
D) 100.
E) infinity.
E
You might also like to view...
Which of the following accidents has an optimal probability of zero?
A) patent infringements B) audit failure C) product failure D) It is not optimal for any of the accidents, patent infringements, audit failure, or product failure to have a probability of zero.
Frequently, politicians enact restrictive trade policies to protect domestic industries. How does economic theory predict this will affect the efficiency of economic organization?
In a market system, self-interest motivates most people to:
A. avoid paying insurance premiums. B. remain self-sufficient. C. provide products for other people. D. rely on government central planning.
Refer to the figure below. 
If Row Resorts keeps its rates high, then Column Cruises would receive the highest payoff if it:
A. agreed with Row Resorts to reduce their rates at exactly the same time. B. chose either strategy because it will have the same payoff in either case. C. offered reduced rates. D. kept its rates high.