Given the reserve-holding ratio e and the fraction of deposits held as cash c, the deposit multiplier becomes
A) e - c.
B) 1/(e - c).
C) e/c.
D) ec.
E) 1/(e + c).
E
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The less elastic the supply, the
A) less likely the government is to tax the product. B) less likely the government is to impose a price ceiling. C) larger the fraction of any tax imposed on the product that is paid by the suppliers. D) less elastic the demand.
Which of the following statements about population and migration is most accurate?
a. In the first decade after the Civil War many of the freedmen moved to the North. b. During most of US history more African Americans have lived in rural than urban areas. c. Latinos are expected to comprise a smaller fraction of US population in 2025 than they do now. d. Between 1810-1850 the population center of the US shifted from the Midwest to the east.
Given the zero lower bound on the nominal rate, the lowest real interest rate the central bank can achieve is
A) - . B) . C) 0. D) i.
Within the European Central Bank, banks with excess reserves:
A. can deposit them with the ECB and earn an interest rate below the target refinancing rate. B. must deposit the excess with the ECB's Deposit Facility. C. earn no interest on excess reserves, similar to the system in the U.S. D. none of the above answers is correct; there are no required reserves for the ECB and so therefore no excess reserves.