If the reserve ratio is 12.5 percent, then $2,000 of additional reserves can create up to

a. $8,000 of new money.
b. $16,000 of new money.
c. $32,000 of new money.
d. None of the above is correct.

b

Economics

You might also like to view...

A market society will always protect the natural environment

a. True b. False Indicate whether the statement is true or false

Economics

Which of the following is an example of a public good?

A) a movie ticket B) a cup of coffee C) books at a public library D) a railroad sign

Economics