The reserve-deposit ratio equals:

A. bank deposits divided by bank reserves.
B. 10 percent of bank reserves.
C. bank reserves divided by bank deposits.
D. 10 percent of bank deposits.

Answer: C

Economics

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Economics

Describe, in general terms, how an economist calibrates a macroeconomic model. What statistics can be usefully examined to see how well the model corresponds to the data?

What will be an ideal response?

Economics