When excess reserves increase, the deposit multiplier is
A. increased.
B. decreased.
C. staying the same.
D. None of the above is correct.
Answer: B
Economics
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Which of the following is a tool of monetary policy?
A. Buying and selling government bonds B. Making loans to banks C. Setting reserve requirements D. All of the above are tools of monetary policy.
Economics
The existence of labor unions could contribute to real-wage rigidity, except that in the United States
A) labor unions are outlawed. B) most workers aren't in unions. C) unions are interested in benefits, not wages. D) unions try to increase employment rather than negotiating over wages.
Economics