If the government of a country decides to increase the required reserve ratio from 10 to 12.5 percent, the value of the money multiplier will: decrease from 10 to 8.
a. increase from 1.0 to 1.2.
b. decrease from 10 to 8

Which of the following is NOT related to fiscal policy?

A) increasing government expenditures B) decreasing marginal tax rates C) passage of new securities laws D) reducing the budget deficit

Why do poor countries often have lower rates of economic growth than richer countries?

What will be an ideal response?