The simple money multiplier:
a. equals the reciprocal of the required reserve ratio
b. assumes banks hold excess reserves.
c. becomes larger as the required reserve ratio increases.
d. equals required reserves plus excess reserves.
e. equals total reserves minus required reserves.
a
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Diseconomies of scale at the firm level occur
a. wherever the firm's long-run average cost curve is horizontal b. wherever the firm's long-run total cost curve is horizontal c. where marginal cost equals marginal revenue d. if a firm becomes "too large" e. if any of the firm's plants becomes "too large"
A lower marginal propensity to consume is most likely to result in a(n): a. flatter aggregate expenditure line
b. steeper aggregate expenditure line. c. upward shift of the aggregate expenditure line. d. downward shift of the aggregate expenditure line.