Suppose you find $1000 in your attic and decide to deposit it all into your local bank, which must hold 20% as required reserves. The deposit expansion multiplier suggests that this $1,000 "injection" of new money will most likely
A) increase the money supply by a little more than $1,000.
B) increase the money supply by a little less than $1,000.
C) increase the money supply by only $1,000.
D) increase the money supply by $5,000.
D
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The information to be gathered for a decision depends on which of the following?
a. The current market conditions and on the expected costs and benefits of acquiring the information. b. The model that underlies a decision and on the expected costs and benefits of acquiring the information. c. The cost of the information and the current market conditions. d. The model that underlies a decision and the amount of information that is internally available.
Refer to the data. In equilibrium, the level of consumption spending will be:
(Advanced analysis) Answer the question on the basis of the following consumption and investment data for a private closed economy. Figures are in billions of dollars. C = 60 + .6Y I = I 0 = 30 A. 170. B. 270. C. 160. D. 195.