Assume the federal government collects $20 billion in taxes and spends them on the public. If the money multiplier is 2.5, bank reserves
A) and the money supply still increase by only $20 billion.
B) increase by $20 billion and the money supply increase by $50 billion.
C) and the money supply both increase by $50 billion.
D) and the money supply are unaffected.
D
Economics
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The table above shows data reported by the Office for National Statistics for the United Kingdom in September 2000. In September 2000, the unemployment rate is
A) 5.5 percent. B) 1,619 thousand. C) 3.5 percent. D) 3.7 percent. E) 5.8 percent.
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The slope of the production possibilities curve is positive if there is free trade.
a. true b. false
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