[Answered] Suppose Darrell has 4,000 in currency which he deposits in his bank. If the reserve ratio is 25 ...

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Author Question: Suppose Darrell has 4,000 in currency which he deposits in his bank. If the reserve ratio is 25 ... (Read 6 times)

tuffie

Hero Member
Posts: 534

on: Jun 30, 2018

Suppose Darrell has 4,000 in currency which he deposits in his bank. If the reserve ratio is 25 percent, this will lead to a maximum increase of ________ in M1 throughout all banks.

A) 0 B) 4,000 C) 6,000 D) 12,000

Question 2

Which of the following factors strengthens the case for policy activism?

A) flexible wages B) lack of real-business-cycles
C) sticky prices D) flexible prices

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kusterl

Sr. Member
Posts: 315

Reply #1 on: Jun 30, 2018

Answer to Question 1

D

Answer to Question 2

C

tuffie

Hero Member
Posts: 534

Reply #2 on: Jun 30, 2018

Correct answers!

kusterl

Sr. Member
Posts: 315

Reply #3 on: Jun 30, 2018

Great! Please up vote

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Author Question: Suppose Darrell has 4,000 in currency which he deposits in his bank. If the reserve ratio is 25 ... (Read 6 times)

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