For the money expansion process to produce the maximum potential ...

[codyclark]

For the money expansion process to produce the maximum potential multiplier effect
 
  A) all loans of a given bank have to be deposited in that bank.
  B) the Fed has to sell government bonds to back up the loans.
  C) the required reserve ratio has to be 100 percent.
  D) all loans from banks have to be redeposited throughout the banking system.

Question 2

If an economy's growth rate of real GDP is 3 percent per year and the growth rate of the population is 2.5 percent per year, the growth rate of real GDP per person is
 
  A) 3 - 2.5 = 0.5 percent per year.
  B) 3 + 2.5 = 5.5 percent per year.
  C) 2.5 - 3 = -0.5 percent per year.
  D) (3 - 2.5 )  2.5  100 = 20 percent per year.
  E) (2.5 - 3 )  3  100 = 16.6 percent per year.

[patma1981]

Answer to Question 1

D

Answer to Question 2

A

[codyclark]

Thank you

[patma1981]

Happy to help you