If the required reserve ratio decreases, the
money multiplier increases
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When collective agreement on a policy is 100 percent of all voters, external costs are minimized
a. True b. False
If depositors become worried about the safety of their deposit accounts, they may trigger a
a. deposit surplus. b. bank run. c. fiscal policy crisis. d. required reserve increase.
If net investment in 2017 is $500 billion and gross investment in 2017 is $900 billion, depreciation in 2017 is
A. -$500 billion. B. $0. C. $400 billion. D. $1,400 billion.
The incentive problem within the modern corporation is that the:
A. decision makers have stronger incentives to use assets productively than in small business where there is no separation of ownership and control. B. decision makers have weaker incentives to use assets productively than in small business where there is no separation of ownership and control. C. decision makers have stronger incentives to use assets productively than in small business where there is big separation of ownership and control. D. decision makers have weaker incentives to use assets productively than in small business where there is a big separation of ownership and control.