For any new deposits into the banking system, the deposit expansion multiplier provides

A) no useful information regarding the potential expansion of the nation's money supply.
B) an exact prediction of the expansion of the nation's money supply.
C) a theoretical limit on the potential expansion of the nation's money supply.
D) an argument that deposits don't effect the nation's money supply at all.

C

Economics

You might also like to view...

Refer to the scenario above. Which of the following is the optimum choice?

A) Apartment Very Close B) Apartment Close C) Apartment Far D) Apartment Very Far

Economics

Refer to the scenario above. Which of the following techniques is used to arrive at the optimum decision in the scenario?

A) Optimization in levels B) Comparative statics C) Total net benefit approach D) Principal of Optimization at the Margin

Economics