The money multiplier will be
a. larger if banks hold on to excess reserves but smaller if private citizens hold on to cash.
b. smaller if banks hold on to excess reserves but larger if private citizens hold on to cash.
c. smaller if either banks hold on to excess reserves or private citizens hold on to cash.
d. larger if either banks hold on to excess reserves or private citizens hold on to cash.
e. constant whether or not banks and citizens try to alter their holdings of excess reserves and cash.
C
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What is the name of the organization that defines business cycle peaks and troughs in the United States?
A) the National Bureau of Economic Research B) the National Peak and Trough Committee C) the Bureau of Labor Statistics D) the Federal Reserve
The fact that when the price of a good goes up, people buy less of it is known as the
A) law of supply. B) law of demand. C) concept of market equilibrium. D) need for inferior goods.