Using the formula for an infinite sum, if "r" designates the reserve ratio, the 1 / reserve ratio would equal
A) (1 - r). B) 1 / (1 - r). C) r / (1 - r). D) 1 / [1 - (1 - r)].
D
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A ________ is an extensive -form representation of a game
A) payoff matrix B) game tree C) Nash equilibrium D) pure strategy
Consider a small open economy in equilibrium with a zero current account balance. What happens to national saving, investment, and the current account balance in equilibrium if
(a) future income rises? (b) business taxes rise? (c) government expenditures decline temporarily? (d) the future marginal product of capital rises?
An equilibrium price is unaffected by nonprice factors
a. True b. False Indicate whether the statement is true or false
When taxes are a function of income, the investment multiplier, government spending multiplier, and tax multiplier are all less than they would be if taxes were a lump sum amount.
Answer the following statement true (T) or false (F)