What happens to the money multiplier when the reserve requirement increases from 20% to 25%?
a) It stays the same.
b) It increases from 20 to 25.
c) It decreases from 5 to 4.
d) It falls to zero.
Ans: c) It decreases from 5 to 4.
Economics
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Why would macroeconomists rate economic performance in Speed-Nation superior to that in Stag-Nation? Speed-Nation has
A) milder business cycles. B) more volatile business cycles. C) faster economic growth. D) larger real GDP gaps. E) smaller real GDP gaps.
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