If the required reserve ratio is decreased from .2 to .1 the demand deposit expansion multiplier
A) increases from 5 to 10.
B) increases from 4 to 4.5.
C) decreases from 5 to 2.5.
D) decreases from 2 to 1.
D
Economics
You might also like to view...
Refer to Table 2-7. What is Minnie's opportunity cost of making an umbrella?
A) 1/10 of a hat B) 1/4 of a hat C) 4 hats D) 40 hats
Economics
If additional domestic production will lead to positive spillover effects, then an import tariff that increases domestic production would better adhere to the specificity rule than would a government subsidy to domestic production.
Answer the following statement true (T) or false (F)
Economics