This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If people never withdrew money, how much money could the banking system create given a new amount of ... (Read 129 times)

codyclark

  • Hero Member
  • *****
  • Posts: 538
on: Jun 30, 2018
If people never withdrew money, how much money could the banking system create given a new amount of deposits, assuming that excess reserves were zero?
 
  A) the amount of new deposits multiplied by the money multiplier
  B) as much as the new deposits
  C) zero
  D) the amount of new deposits multiplied by the reserve ratio

Question 2

Refer to the scenario above. The increase in output due to a one-unit increase in capital is smallest at point ________.
 
  A) A B) B C) C D) D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

olderstudent

  • Sr. Member
  • ****
  • Posts: 339
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

D


codyclark

  • Member
  • Posts: 538
Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

AISCAMPING

  • Member
  • Posts: 347
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

Did you know?

On average, someone in the United States has a stroke about every 40 seconds. This is about 795,000 people per year.

More People Are Living in Cities More People Are Living in Cities
Functional divisions of the nervous system. Functional divisions of the nervous system.
The bimetallic temperature sensor spring controls the amount of silicone that is allowed into the ... The bimetallic temperature sensor spring controls the amount of silicone that is allowed into the ...
Schematic of a typical electronic throttle control (ETC) system. Note that terminal #5 is always ... Schematic of a typical electronic throttle control (ETC) system. Note that terminal #5 is always ...
A typical evaporative emission control system. Note that when the computer turns on the canister ... A typical evaporative emission control system. Note that when the computer turns on the canister ...
Slap the foot bottom with the back of the hand. Rapid, light slaps create a stimulating sensation. Slap the foot bottom with the back of the hand. Rapid, light slaps create a stimulating sensation.
Video: Arthroscopy

For a complete list of videos, visit our video library