The potential money multiplier, m, is
a. 1/excess reserves
b. excess reserves × loans
c. legal reserve requirement/excess reserves
d. 1/actual reserves
e. 1/legal reserve requirement
E
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What are the policy actions taken by the Fed and the U.S. Treasury in response to the financial crisis?
What will be an ideal response?
In 2012, net worth was about what percentage of total funds raised by banks?
A) 2% B) 7% C) 13% D) 35%
A decrease in the price level, holding the nominal money supply constant, will shift the LM curve
a. upward and to the right. b. downward and to the left. c. downward and to the right. d. upward and to the left.
Cooperation in repeated prisoner's dilemma situations seems to be enhanced by all of the following except
a. limited punishment schemes b. clarity of conditional rewards c. grim trigger strategy d. provocability--i.e., credible threats of punishment e. tit for tat strategy