The simple money multiplier: a. equals the reciprocal of the ...

[tiffannnnyyyyyy]

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]

Answer to Question 1

a

Answer to Question 2

c