Assuming initially that the required reserve ratio = 10%, the currency-deposit ratio = 75%, and the excess reserve ratio = 156%, an increase in the currency-deposit ratio to 150% causes the M1 money multiplier to ________, everything else held
constant. A) increase from 0.73 to 0.78
B) decrease from 0.73 to 0.61
C) increase from 1.54 to 1.67
D) decrease from 1.67 to 1.54
A
Economics
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a. True b. False
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In the long run, when economic profit is greater than zero in a perfectly competitive industry, _____
a. existing firms contract their production levels b. firms suffer losses but decide to operate c. there is an upward pressure on the market price of the good d. new firms enter the industry
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