Carson’s bank has a reserve requirement ratio of 20 percent. What is the money multiplier for Carson’s bank?
a. 2
b. 8
c. 5
d. 20
c. 5
You might also like to view...
If the demand for labor is unchanged, an increase in the supply of labor will lead to
A) a decrease in the quantity of labor demanded and a decrease in the equilibrium wage. B) a decrease in the quantity of labor demanded and an increase in the equilibrium wage. C) an increase in the quantity of labor demanded and an increase in the equilibrium wage. D) an increase in the quantity of labor demanded and a decrease in the equilibrium wage.
Under the new discount window system, the interest rate for primary credit loans is set
A) one percentage point below the federal funds rate target. B) one percentage point above the federal funds rate target. C) two percentage points above the federal funds rate target. D) two percentage points below the federal funds rate target.
In the above figure, if the monopolist engages in marginal cost pricing, what are its output and price?
A) 1,200, $3 B) 900, $7 C) 700, $7 D) 700, $10
One would expect to observe a diminishing marginal product of labor when crowded office space reduces the productivity of new workers
a. True b. False Indicate whether the statement is true or false