The money multiplier is calculated as 1 / reserve requirement multiplied by the:
A. change in excess reserves following a change in the money supply.
B. change in deposits following a change in government expenditure.
C. change in total reserves following a change in the money supply.
Answer: A. change in excess reserves following a change in the money supply.
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Which of the following is true of the wage gap between the top 10% of earners and the bottom 10% of earners in the U.S. economy?
A) The wage gap has increased over time. B) The wage gap has decreased over time. C) The wage gap has remained the same over time. D) There is hardly any wage gap between the top 10% of earners and the bottom 10% of earners in the U.S. economy.
Which of the following groups have no promise of any payment from the corporate firm?
a. the banks who have loaned the company money b. the common stockholders c. the preferred stockholders d. the managers e. the bondholders
An oligopoly can be characterized by production of either identical goods or differentiated goods.
Answer the following statement true (T) or false (F)
David increases the number of companies in which he holds stocks
a. This reduces risk's standard deviation and firm-specific risk. b. This reduces risk's standard deviation and market risk. c. This raises market risk, but lowers firm-specific risk. What happens to overall risk is unclear. d. This raises firm-specific risk, but lowers market risk. What happens to overall risk is unclear.