The money multiplier equals:
a. 1 / excess reserves.
b. excess reserves / loans.
c. required reserve ratio / excess reserves.
d. 1 / actual reserves.
e. 1 / required reserve ratio.
e
Economics
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Refer to Figure 24-2. Ceteris paribus, a decrease in the price level would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.
Economics
Which situation is most likely to exhibit diminishing marginal returns to labor?
A) a factory that obtains a new machine for every new worker hired B) a factory that hires more workers and never increases the amount of machinery C) a factory that increases the amount of machinery and holds the number of worker constant D) None of these situations will result in diminishing marginal returns to labor.
Economics