Why is the money multiplier smaller than the simple deposit multiplier?
What will be an ideal response?
In the case of the money multiplier, individuals may hold some of their assets in cash rather than depositing them in a checking account and banks may hold excess reserves. The simple deposit multiplier assumes all assets are deposited into banks and banks do not hold excess reserves.
Economics
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It is most likely that the federal government will never actually pay off the national debt.
Answer the following statement true (T) or false (F)
Economics
Which factor of production accounts for the highest percentage of the income that the production process generates in the United States?
A. Capital B. Natural resource C. Land D. Labor
Economics