For this question, assume that individuals do not hold currency (i.e., c = 0). If the ratio of reserves to deposits is .10, the money multiplier is
A) .1.
B) .9.
C) 4.
D) 5.
E) 10.
E
Economics
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The smaller the marginal propensity to consume, the
A) flatter the IS curve will be. B) steeper the IS curve will be. C) flatter the LM curve will be. D) steeper the LM curve will be.
Economics
Which of the following conditions hold true for both the perfectly competitive firm and the monopoly at the profit-maximizing output level?
A) MR = P B) MC = ATC C) MC = P D) MR = MC
Economics