The value of the deposit multiplier is 1 divided by the required reserve ratio
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Refer to the information. If the economy's tax schedule was T = .2Y rather than T = T 0 = 30, the equilibrium GDP would be:
Answer the question on the basis of the following information for a mixed
open economy. The letters Y, C a , I g , X n , G, and T stand for GDP, consumption, gross
investment, net exports, government purchases, and net taxes respectively. Figures are in
billions of dollars.
A. $387.5.
B. $518.5.
C. $316.
D. $412.
Suppose a tax on buyers has been imposed in the graph shown. Once the tax is in place, the sellers experience:
A. a decrease in supply.
B. an increase in supply.
C. a decrease in quantity supplied.
D. an increase in quantity supplied.