In the simple model of multiple deposit creation in which banks do not hold excess reserves, the increase in checkable deposits equals the product of the change in reserves and the
A) reciprocal of the excess reserve ratio.
B) simple deposit expansion multiplier.
C) reciprocal of the simple deposit multiplier.
D) discount rate.
B
Economics
You might also like to view...
If there is excess demand in a perfectly competitive market, does the government need to intervene to restore the equilibrium price and quantity?
What will be an ideal response?
Economics
Which of the following transactions would be excluded in the capital account?
A. A Japanese citizen purchases a U.S. Treasury bill. B. A Japanese citizen purchases an office building in Manhattan. C. A U.S. citizen purchases a share of stock from a Japanese company. D. An American purchases a Toyota.
Economics