Author Question: The simple money multiplier: a. equals the reciprocal of the required reserve ratio. b. assumes ... (Read 88 times)

tiffannnnyyyyyy

  • Hero Member
  • *****
  • Posts: 512
The simple money multiplier:
 a. equals the reciprocal of the required reserve ratio.
 b. assumes banks hold excess reserves.
 c. becomes larger as the required reserve ratio increases.
  d. equals required reserves plus excess reserves.
 e. equals total reserves minus required reserves.

Question 2

Suppose at a particular level of real gross domestic product (GDP), there are no unintended inventory adjustments. In this context, which of the following is true?
 a. Real GDP is less than the equilibrium level of real GDP demanded.
  b. Real GDP is greater than the equilibrium level of real GDP demanded.
  c. Real GDP equals the equilibrium level of real GDP demanded.
 d. At equilibrium real GDP, there is no inflation.
 e. At equilibrium real GDP, there is no saving.



bubulittle310@msn.cn

  • Sr. Member
  • ****
  • Posts: 281
Answer to Question 1

a

Answer to Question 2

c



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

Did you know?

It is difficult to obtain enough calcium without consuming milk or other dairy foods.

Did you know?

According to the Migraine Research Foundation, migraines are the third most prevalent illness in the world. Women are most affected (18%), followed by children of both sexes (10%), and men (6%).

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

For a complete list of videos, visit our video library