Suppose the economy is in a prosperity phase of the business cycle. Employment is high and in the month of August, new demand deposits amounted to $15,000 billion, which supported a total increase (including the $15 billion) of $75,000 billion, which is the maximum allowable. The potential money multiplier, then,
a. must be 5
b. must be 2
c. must be 0.50
d. must be 0.20
e. cannot be determined from the information given
A
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Refer to Table 4.1, which shows Flo's and Rita's individual supply schedules for frozen latte-on-a-stick. Assuming Flo and Rita are the only suppliers in the market, if the market quantity supplied is 3, the price must be
A) $0. B) $2. C) $4. D) $5.
Why might an oil cartel's effectiveness be undermined during a recession but strengthened during an economic boom?
What will be an ideal response?
The difference between actual and natural unemployment rates is called ________ unemployment
A) turnover B) mismatch C) cyclical D) measured
A margin call is when:
A. prices on future values of a stock are forecasted to be lower than current prices. B. prices on future values of a stock are forecasted to be higher than current prices. C. it looks like you are in danger of running through your money, and your broker forces you to sell your stock and use the money to pay back your loan. D. the market reaches a tipping point, and the financial bubble bursts.