If the reserve ratio is 0.25, the money multiplier is:
A. 20.0.
B. 25.0.
C. 4.0.
D. 5.0.
Answer: C
You might also like to view...
Small devaluations are usually sufficient to stem capital flight
Indicate whether the statement is true or false
The balance of payments summarizes the transactions that occur during a given time period between
a. the government of one country and the government of another country b. the national government and local governments in the same country c. individuals, firms, and government of one country and individuals, firms, and governments throughout the rest of the world d. individuals, firms, and governments of two countries e. non-government residents (individuals and firms) of two countries
The main attractive feature(s) of a negative income tax program is (are):
a. c and d. b. c, d, and e. c. it is simple. d. it avoids the stigma of hand-outs. e. it only subsidizes the unemployed.
A binding price ceiling may not help all consumers, but it does not hurt any consumers
a. True b. False Indicate whether the statement is true or false