The ________ the reserve ratio, the ________ the money multiplier
A) smaller; smaller
B) smaller; larger
C) larger; larger
D) None of the above are correct.
Answer: B
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Define the nominal interest rate and the real interest rate. Discuss the relationship between the nominal interest rate and the real interest rate
What will be an ideal response?
According to the misperceptions theory, an unanticipated decrease in the money supply shifts the AD curve ________, causing output to ________ in the short run
A) up and to the right; rise B) up and to the right; fall C) down and to the left; rise D) down and to the left; fall
If the market supply increases and, simultaneously, market demand decreases, the new equilibrium will show:
a. market price will decrease, and market quantity exchanged could increase, decrease, or remain unchanged. b. market price will increase, and market quantity exchanged will decrease. c. market price will increase, and the quantity exchanged could increase, decrease, or remain the same. d. market price could increase, decrease, or remain the same, and quantity exchanged will increase. e. market price will increase, decrease, or remain the same, and quantity exchanged will decrease.
Tina Eckstrom and her husband bought a deferred annuity that started paying them $700 a month in retirement benefits. They, along with millions of other people who live on fixed incomes, are examples of:
a. those who are responsible for inflation. b. the big winners from inflation. c. the big losers from inflation. d. the paradox of thrift. e. stock market losers.