If the required reserve ratio is 10 percent, an increase in bank ...

[Zulu123]

If the required reserve ratio is 10 percent, an increase in bank reserves of 1,000 can support an increase in checking account deposits (including the original deposit) in the banking system as a whole of up to
 
  A) 100. B) 1,000. C) 10,000. D) 100,000.

Question 2

The marginal propensity to consume is the slope of the consumption function.
 
  Indicate whether the statement is true or false

[brittanywood]

Answer to Question 1

C

Answer to Question 2

TRUE