If R represents the reserve ratio for all banks in the economy, then the money multiplier is
a. 1/(1-R).
b. 1/R.
c. 1/(1+R).
d. (1+R)/R.
b
Economics
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An increase in the discount rate ________ bank reserves and ________ the money supply if banks with outstanding loans are encouraged to pay them back more quickly
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
Economics
In which of the following periods was the yield curve inverted?
A) February 2004 B) February 2007 C) February 2010 D) The yield curve was not inverted during any of these periods.
Economics