Which of the following is true of the money multiplier?
a. The higher the value of the required reserve ratio, the higher the value of the money multiplier.
b. The higher the value of the required reserve ratio, the lower the value of the money multiplier.
c. The higher the value of deposits in banks, the lower the value of the money multiplier

Members of the European Monetary Union

A. adopt a common currency called the euro. B. float their domestic currency exchange rate with both the euro and the rest of the world. C. can continue to use their own domestic currency but are required to hold a stipulated amount of a common currency. D. cannot hold reserves of the common currency.

Explain what it means to choose at the margin and illustrate with three choices at the margin that you have made today

What will be an ideal response?