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Author Question: Suppose the required reserve ratio is 20 percent. If banks are conservative and choose not to loan ... (Read 35 times)

Bob-Dole

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on: Jun 29, 2018
Suppose the required reserve ratio is 20 percent. If banks are conservative and choose not to loan all of their excess reserves, the real-world deposit multiplier is
 
  A) less than 5. B) equal to 5. C) greater than 5. D) equal to 20.

Question 2

The current account does not include which of the following?
 
  A) U.S. holdings of foreign assets B) net transfers
  C) net exports D) net investment income


livaneabi

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Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

A


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