When the Fed supplies the banking system with an extra dollar of reserves, deposits increase by more than one dollar—a process called

A) extra deposit creation.
B) multiple deposit creation.
C) expansionary deposit creation.
D) stimulative deposit creation.

B

Economics

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A price ceiling established below the market clearing price will usually cause

A) nonprice rationing. B) an excess supply. C) no change in the market clearing price. D) a decrease in the market clearing price.

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Why study perfect competition, if it rarely exists?

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