Tim deposits $30,000 into Statewide Bank. Statewide has a money multiplier of 8. How much money could Tim’s deposit potentially create?
a. $30,000
b. $240,000
c. $3,750
d. $26,250
b. $240,000
You might also like to view...
Gary has to decide between attending a two-day art workshop and a four-day art worksho
A) optimization in levels. B) optimization in differences. C) ordinal analysis. D) comparative statics.
Excess capacity and high advertising expenditures are most likely to be encountered in
A) perfect competition. B) monopolistic competition. C) monopoly. D) both monopolistic and perfect competition.
If a firm goes out of business because of negative economic profits, its books
A) might indicate a positive accounting profit. B) might indicate that opportunity costs were zero. C) might indicate that taxes are too high. D) might suggest a mistaken value of explicit costs.
A sale of bonds by the Fed generates
A) an increase in the demand for money balances. B) a decrease in the demand for money balances. C) an increase in the demand for bonds and a rise in bond prices. D) an increase in the supply of bonds and a fall in bond prices.