What is the potential money multiplier if the reserve requirement is 4%?
a) 2.5
b) 4
c) 14
d) 25
Ans: d) 25
Economics
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During the Great Depression:
A. overall GDP rose. B. investment increased, but consumption decreased. C. both consumption and investment decreased. D. investment fell, but consumption increased.
Economics
If government spending and tax collections both increase by the same amount, then according to the classical loanable funds market:
a. the demand for loanable funds will increase and the interest rate will rise. b. the demand for loanable funds will fall and the interest rate will rise. c. savings will rise and interest rates will fall. d. nothing will shift and the interest rate will remain constant. e. none of the above.
Economics