Which of the following will NOT reduce the actual money multiplier?
a) Banks keeping some excess reserves.
b) Consumers keeping money on hand for transactions.
c) An increase in reserve requirements.
d) A certain bank being loaned up.
Ans: d) A certain bank being loaned up.
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The government strives to operate at neither a deficit nor surplus budget in order to keep the federal budget
A) balanced. B) in line with the stock market. C) equal to that of other countries. D) equal to inflation.
A country possesses a comparative advantage in the production of a good if
A) the opportunity cost in terms of forgone output of alternative goods is lower for this country than it is for its trading partners. B) it possesses an absolute advantage in the production of this good. C) it is able to produce more of this good per hour than can any other country. D) all of the above.