The potential money multiplier, m, is
a. 1/excess reserves
b. excess reserves × loans
c. legal reserve requirement/excess reserves
d. 1/actual reserves
e. 1/legal reserve requirement
E
Economics
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If a household is credit rationed, the MPC out of current disposable income is ________ compared to the MPC out of current disposable income if a household is not credit rationed
A) higher B) lower C) the same D) negative
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An increase in the marginal physical product of capital increases the demand for loanable funds
Indicate whether the statement is true or false
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