The simple deposit multiplier? is
A) the reciprocal of the required reserve ratio.
B) always 1.
C) the same as the required reserve ratio.
D) different from bank to bank even if the required reserve ratio is the same for all banks.
Answer: A) the reciprocal of the required reserve ratio.
Economics
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Moral hazard is a problem for the insurance industry
a. True b. False
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From an initial long-run equilibrium, if aggregate demand grows more slowly than long-run and short-run aggregate supply, then Congress and the president would most likely
A) increase the required reserve ratio and decrease government spending. B) decrease government spending. C) decrease oil prices. D) decrease taxes. E) lower interest rates.
Economics