Which of the following will tend to make the deposit expansion multiplier a larger number?
A. A decrease in loans made by commercial banks
B. An increase in loans made by commercial banks
C. An increase in the prime interest rate
D. An increase in the money supply
E. A decrease in the required reserve ratio
A. A decrease in loans made by commercial banks
You might also like to view...
What is the real value of money?
A) the ability of shop at market prices B) the quantity of goods it can buy C) its compounded earnings in banks D) its face value
Gross domestic product (GDP) figures tend to understate the quantity of goods and services available because: a. GDP excludes the value of goods produced at home
b. many items are counted twice or more in the intermediate stages of production. c. more women are entering the labor force. d. firms often add less to inventories than they planned to. e. exports are subtracted from GDP but imports are not added.
One problem with regulating a monopolist on the basis of cost is that
a. by focusing on costs, the regulators ignore profits. b. it does not provide an incentive for the monopolist to reduce its cost. c. a monopolist's costs, by definition, are higher than costs of perfectly competitive firms. d. a monopolist is still able to generate excessive economic profits.
If a change in the price of a good causes no change in total revenue
a. the demand for the good must be elastic. b. the demand for the good must be inelastic. c. the demand for the good must be unit elastic. d. buyers must not respond very much to a change in price.