Which of the following is the relationship between the required reserve ratio (RRR) and the demand deposit multiplier?
a. The demand deposit multiplier = 1/RRR
b. The demand deposit multiplier = RRR ? change in reserves
c. The demand deposit multiplier = 1/(1 + RRR)
d. RRR = demand deposit multiplier
e. The demand deposit multiplier = 1/(1 - RRR).
A
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The use of expansionary fiscal and monetary policy just prior to elections is known as the ________
A) electoral college B) time-inconsistency problem C) Watergate scandal D) political business cycle
When an economy experiences significant economic growth:
a. a negative relationship exists between output per capita and adult literacy rates. b. an indirect relationship exists between output per capita and adult literacy rates. c. a direct relationship exists between output per capita and adult literacy rates d. no observed relationship exists between output per capita and adult literacy rates.