The deposit expansion multiplier would increase if the Fed were to
A) raise the required reserve ratio.
B) lower the required reserve ratio.
C) raise the discount rate.
D) sell bonds.
B
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Which of the following statements is true?
a. A company can manipulate uncontrollable factors to increase the demand for its product b. A company can manipulate uncontrollable factors to increase the supply of its product c. A company cannot manipulate uncontrollable factors to increase the demand for its product d. A company cannot manipulate controllable factors to increase the demand for its product
Government bureaus, unlike private firms,
a. derive their revenue by selling output to the government b. have incentives to respond to consumers' desires c. price their output by equating marginal cost and marginal revenue d. attempt to achieve zero profit e. receive little consumer feedback
Which of the following is likely to cause market failure and be undersupplied?
A. Research B. Orange juice C. River water D. Grazing pasture
In a voluntary contributions experiment described at the end of the chapter, the chump is the individual who:
A. is systematically exploited by others. B. contributes money to fund a public good equal to the benefits they ultimately receive. C. free-rides. D. contributes money to fund a public good much less than the benefits they ultimately receive.