Suppose Jennifer has $42,000 in currency which she deposits in her bank. If the reserve ratio is 50 percent, this will lead to a maximum increase of ________ in M1 throughout all banks
A) $0 B) $21,000 C) $42,000 D) $84,000
C
Economics
You might also like to view...
Which of the following statements is true of the short run?
A) Identical firms can enjoy positive economic profits. B) Identical firms face a downward-sloping supply curve. C) Non-identical firms face a downward-sloping supply curve. D) Non-identical firms cannot enjoy positive economic profits.
Economics
Recency bias refers to a psychological bias whereby people believe that recent past trends and patterns will continue in the future
How would recency bias explain why investors chase returns? Does return-chasing lead investors to realize a higher rate of return on investments?
Economics