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Author Question: If the currency drain ratio is 0.2 and the desired reserve ratio is 0.03, the money multiplier is ... (Read 65 times)

cagreen833

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on: Jun 29, 2018
If the currency drain ratio is 0.2 and the desired reserve ratio is 0.03, the money multiplier is
 
  A) 5.22. B) 6.67. C) 0.76. D) 4.46. E) 3.23.

Question 2

An economy has no imports or income taxes. An increase in autonomous expenditure of 40 billion increases equilibrium expenditure by 160 billion. The expenditure multiplier equals
 
  A) 2. B) 8. C) 6. D) 16. E) 4.


FergA

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

A

Answer to Question 2

E


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