If the required reserve ratio (RR) is 20 percent, the simple deposit multiplier is

Suppose the government has a budget deficit of $2 billion. If there is no Ricardo-Barro effect, how much crowding out of investment occurs?

A) some crowding out occurs, but less than $2 billion B) more than $2 billion C) exactly equal to $2 billion dollars D) No crowding out occurs and investment does not change. E) No crowding out occurs because investment increases.

In finance, risk is most commonly measured by

A) the probability distribution. B) the standard deviation. C) the average deviation. D) the square root of the standard deviation.