A simple deposit multiplier equal to two implies a required reserve ratio equal to

A) 100 percent.
B) 50 percent.
C) 25 percent.
D) 0 percent.

B

Economics

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Suppose that Year 1 is the base year. Year 2 real GDP is

A) $200. B) $270. C) $310. D) $390.

Economics

If a fixed money growth rate of 4 percent per year is followed and the growth rate of the natural level of real GDP is 4 percent per year, the average rate of inflation is: a. 8 percent

b. 4 percent. c. zero. d. 1-2 percent.

Economics