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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 18 times)

tuffie

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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

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

C


tuffie

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Reply #2 on: Jun 30, 2018
Correct answers!


kusterl

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Reply #3 on: Jun 30, 2018
Great! Please up vote :D


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