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

Author Question: The nominal interest rate cannot fall below A) the real interest rate. B) the rate of growth in ... (Read 154 times)

Arii_bell

  • Hero Member
  • *****
  • Posts: 596
on: Jun 30, 2018
The nominal interest rate cannot fall below
 
  A) the real interest rate.
  B) the rate of growth in the money stock.
  C) 2.
  D) zero.

Question 2

If the required reserve ratio is 10 and the Fed purchases 20 million worth of securities, what is the simple deposit multiplier and what happens to the amount of deposits in the banking system? Assume that banks do not hold excess reserves and the
 
  public does not change its currency holdings.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

enass

  • Sr. Member
  • ****
  • Posts: 380
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

The simple deposit multiplier is 1/0.10 = 10. The amount of deposits changes by 20 million  10 = 200 million.


Arii_bell

  • Hero Member
  • *****
  • Posts: 596
Reply #2 on: Jun 30, 2018
Thank you


enass

  • Sr. Member
  • ****
  • Posts: 380
Reply #3 on: Jun 30, 2018
No problemo


« previous next »
 

Did you know?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Did you know?

Certain topical medications such as clotrimazole and betamethasone are not approved for use in children younger than 12 years of age. They must be used very cautiously, as directed by a doctor, to treat any child. Children have a much greater response to topical steroid medications.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

Immunoglobulin injections may give short-term protection against, or reduce severity of certain diseases. They help people who have an inherited problem making their own antibodies, or those who are having certain types of cancer treatments.

The logistic growth model does not describe all populations. The logistic growth model does not describe all populations.
Massive amounts of wood are stored on the forest floor of old-growth temperate coniferous forests of Massive amounts of wood are stored on the forest floor of old-growth temperate coniferous forests of
Factors that contribute to the growth of family members. Factors that contribute to the growth of family members.
Relationship between Income per Capita and Population Growth Relationship between Income per Capita and Population Growth
Irene Manufacturing uses a predetermined overhead allocation rate based on a percentage of ... Irene Manufacturing uses a predetermined overhead allocation rate based on a percentage of ...
Early growth of corn (Zea mays), a typical monocot. Early growth of corn (Zea mays), a typical monocot.
Video: Introduction to Heart Attacks

For a complete list of videos, visit our video library