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

Author Question: Which of the following assumptions made in deriving the simple deposit multiplier is unrealistic? ... (Read 14 times)

Garrulous

  • Hero Member
  • *****
  • Posts: 686
on: Jun 30, 2018
Which of the following assumptions made in deriving the simple deposit multiplier is unrealistic?
 
  A) The Fed sets the required reserve ratio.
  B) The Fed is able to affect the level of reserves in the banking system.
  C) Banks loan out all of their excess reserves.
  D) The simple deposit multiplier is equal to 1 divided by the required reserve ratio.

Question 2

Swiss experience in the 1980s evidences the ________.
 
  A) effectiveness of targeting monetary aggregates
  B) need for discretion in the face of structural changes in the economy
  C) value of fiscal policy over monetary policy
  D) ascendancy of flexible exchange rate regimes over fixed exchange rate systems


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

tuate

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

B


Garrulous

  • Member
  • Posts: 686
Reply 2 on: Jun 30, 2018
Excellent

sultansheikh

  • Member
  • Posts: 335
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Did you know?

Lower drug doses for elderly patients should be used first, with titrations of the dose as tolerated to prevent unwanted drug-related pharmacodynamic effects.

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

According to animal studies, the typical American diet is damaging to the liver and may result in allergies, low energy, digestive problems, and a lack of ability to detoxify harmful substances.

Did you know?

Eating carrots will improve your eyesight. Carrots are high in vitamin A (retinol), which is essential for good vision. It can also be found in milk, cheese, egg yolks, and liver.

Simple overview of photosynthesis Simple overview of photosynthesis
Pap smear. Cells of the cervix (shown in the center) change in appearance as they progress through Pap smear. Cells of the cervix (shown in the center) change in appearance as they progress through
A sod house in North Dakota, 1896. Individual “bricks” of sod were hewn from the ground and stacked A sod house in North Dakota, 1896. Individual “bricks” of sod were hewn from the ground and stacked
A patient examination room should be simple and efficiently designed. A patient examination room should be simple and efficiently designed.
Healthier choices can be made when time is taken to read a nutrition label. Healthier choices can be made when time is taken to read a nutrition label.
No payments were made on a $2,598 loan during its three-year term. What was the annually ... No payments were made on a $2,598 loan during its three-year term. What was the annually ...
Video: Biological organic compounds

For a complete list of videos, visit our video library