In Zealand, banks' desired reserve ratio is 20 percent and there is no currency drain. The money multiplier equals ________
A) 0.50
B) 0.20
C) 20.0
D) 5.0
D
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Improvements in information technology over the past decade have enhanced labor productivity. What has been a likely result of this change?
A) Unemployment has increased. B) Entrepreneurs no longer have an incentive to invest in information technology. C) Capital productivity has declined. D) The rate of economic growth has increased.
An increase in the real interest rate will
A) most likely lower the reward to savings. B) most likely lower the cost of borrowing. C) most likely lower consumers' purchases of durable goods. D) cause consumers to spend more and save less.
Monetarists believe that the aggregate supply curve is relatively steep in the short and long runs. This means they expect
a. inflation with no change in output. b. increases in output to bring much inflation. c. increases in output to bring little inflation. d. decreases in output to bring much inflation.
The basic function of advertising, according to its proponents, is to assist consumers in making informed, rational choices.
Answer the following statement true (T) or false (F)