As the multiplier process works through time, the size of the multiplier effect becomes

a. larger.
b. smaller.
c. constant.
d. explosive.

b

Economics

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Suppose that a bank has $250 in vault cash, $750 in deposits at the Federal Reserve, $9,000 of loans, and deposits of $10,000. What is the bank's reserve ratio?

a) 2.5% b) 10% c) 33% d) 90%

Economics

According to the law of demand, if the price of movie rentals decreases, ceteris paribus,:

a. the demand for movie rentals would increase. b. the quantity demanded of movie rentals would decrease. c. the quantity demanded of movie rentals would increase. d. the demand for movie rentals would decrease. e. the quantity demanded of movie rentals would not change.

Economics