In February, 2010 the U.S. M1 money multiplier crashed to 0.786. Each $1 increase in the monetary base resulted in the quantity of money increasing by only $0.79. Where did the remaining $0.21 disappear?
A) Banks held part of the $0.21 as excess reserves.
B) Banks loaned out the $0.21.
C) Consumers held part of the $0.21 as currency.
D) Both A and C are correct.
D
Economics
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Which of the following is true? a. Consumption of a public good by one individual reduces the availability of the good for others. b. It is extremely difficult to limit the benefits of a public good to the people who pay for it
c. Public goods are free whenever the government produces them. d. From an efficiency standpoint, a market economy will generally supply too much of a public good.
Economics
Advocates of a gold standard believe that long-term price stability would be more likely under a gold standard than under current Fed monetary policy
Indicate whether the statement is true or false
Economics