The simple deposit multiplier can be expressed as the ratio of the
A) change in reserves in the banking system divided by the change in deposits.
B) change in deposits divided by the change in reserves in the banking system.
C) required reserve ratio divided by the change in reserves in the banking system.
D) change in deposits divided by the required reserve ratio.
B
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Answer the following statement true (T) or false (F)
Refer to the information provided in Figure 26.8 below to answer the question(s) that follow.
Figure 26.8Refer to Figure 26.8. If the economy is at Point A currently producing Y0 and the Z factors decrease, the economy will move to Point ________ in the short run and to Point ________ in the long run.
A. B; C B. C; B C. E; D D. D; E