If the money multiplier decreased from 20 to 12.5, then
a. the Fed increased the reserve ratio from 5 percent to 8 percent.
b. the Fed increased the fed funds rate from 5 percent to 8 percent.
c. the Fed decreased the reserve ratio from 8 percent to 5 percent.
d. the Fed decreased the fed funds rate from 8 percent to 5 percent.
a
Economics
You might also like to view...
A national taco chain offers in-house customers free refills on drinks. It is clearly
A) attempting to increase its total profit. B) generating a negative externality. C) generating a positive externality. D) engaging in predatory pricing. E) doing none of the above.
Economics
Compared to a barter economy, using money increases efficiency by reducing
What will be an ideal response?
Economics