A decrease in the reserve requirement will cause a decrease in the money multiplier.

a. true
b. false


b. false

Economics

You might also like to view...

Use the following table to answer the next question.YearNominal GDPReal GDPPrice Index15,2004,800--25,500--11235,7505,000--What was real GDP in year 2?

A. $5,320 billion B. $4,911 billion C. $4,820 billion D. $4,875 billion

Economics

In calculating gross domestic product, the Bureau of Economic Analysis uses the sum of the market value of final goods and services produced. This means that the BEA

A) values goods at their market prices, multiplies them by the quantity produced, and then adds them up. B) values goods and services at their market prices, multiplies them by the quantity produced, and then adds them up. C) simply counts the total number of goods produced in the market place and then adds them up. D) simply counts the total number of goods and services produced in the marketplace and then adds them up.

Economics

The quantity of a good demanded tends to increase as its price falls because: a. a decrease in price shifts the demand curve to the right

b. a decrease in price shifts the demand curve to the left. c. a decrease in price shifts the supply curve to the right. d. a decrease in price leads consumers to substitute toward this now relatively cheaper product.

Economics

Following an expansionary monetary policy, we would expect lower interest rates, dollar

a. depreciation, and an increase in the current account deficit. b. depreciation, and a decrease in the current account deficit. c. appreciation, and an increase in the current account deficit. d. appreciation, and a decrease in the current account deficit.

Economics