The demand deposit multiplier is equal to the
A) reciprocal of the reserve requirement ratio.
B) reciprocal of the discount rate.
C) inverse of the reserve requirement ratio.
D) inverse of the discount rate.
A
Economics
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In the classical IS—LM/AD—AS model, a beneficial productivity shock would ________ output, ________ the real interest rate, and ________ the price level
A) increase; decrease; increase B) increase; decrease; decrease C) increase; increase; decrease D) decrease; decrease; increase
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In the long-run, the inflation rate will move very closely with ________
A) the growth rate of the money supply B) the change in government debt C) the growth rate of government expenditures D) changes in tax rates
Economics