If reserves in the banking system increase by $100, then checkable deposits will increase by $667 in the simple model of deposit creation when the required reserve ratio is

A) 0.01.
B) 0.05.
C) 0.15.
D) 0.20.


C

Economics

You might also like to view...

The production possibilities curve represents

A) the total amount of stocks and bonds that exist in the economy. B) the trade-off between human capital and physical capital that exists. C) all possible combinations of total output that can be produced. D) society's needs.

Economics

In which of the following ways is the private market sector similar to the public sector in terms of decision making?

A) Prices determine the demand for goods and services in each sector. B) There is competition for scarce resource in both sectors. C) Both sectors may use a type of "force" if necessary. D) Votes by individual voters are basically equal in importance with dollars spent by individuals on goods.

Economics

The largest single share of all income earned by Americans consists of:

A. wages and salaries. B. interest. C. rents. D. corporate profits.

Economics

The long-run aggregate supply curve

A. shows that long-run aggregate supply equals potential real Gross Domestic Product (GDP). B. is very sensitive to changes in the price level. C. slopes up and to the right. D. shows that at higher prices, potential real Gross Domestic Product (GDP) increases.

Economics