Assuming all excess reserves are loaned out, if the reserve ratio is 40 percent, the money multiplier will be equal to
A) 2. B) 2.5. C) 4. D) 6.
B
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If the costs of production decrease, there is
A) an increase in aggregate supply and the AS curve shifts rightward. B) an increase in the quantity of real GDP supplied and a movement up along the AS curve. C) a decrease in aggregate supply and the AS curve shifts leftward. D) a decrease in the quantity of real GDP supplied and a movement down along the AS curve. E) an increase in aggregate supply and the AS curve shifts leftward.
The key endogenous variable in endogenous growth theory is ________
A) the level of technology B) the productivity of research and development C) the growth rate of output D) the level of per capita income
A pecuniary diseconomy occurs when
A. supply exceeds demand. B. higher output levels results in the same unit costs. C. higher output levels results in lower unit costs. D. an expansion of industry output increases the price of an input.
If once vaccinated, a person cannot catch a cold or give a cold to someone else, the marginal social benefit resulting from consumption of the vaccine:
A. equals the marginal social cost of producing the vaccine in a competitive equilibrium. B. equals the marginal benefit received by consumers of the vaccine in a competitive equilibrium. C. exceeds the marginal benefit received by consumers of the vaccine. D. is less than the marginal benefit received by consumers of the vaccine.