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Author Question: The money multiplier _______. A. increases if banks increase their desired reserve ratio B. ... (Read 169 times)

MirandaLo

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on: Jun 29, 2018
The money multiplier _______.
 
  A. increases if banks increase their desired reserve ratio
  B. increases if the currency drain ratio increases
  C. is 1 if the desired reserve ratio equals the currency drain ratio
  D. decreases if banks increase their desired reserve ratio

Question 2

Each point on a demand curve shows
 
  A) the consumer surplus received from purchasing a given quantity of a product.
  B) the legally determined maximum price that sellers may charge for a given quantity of a product.
  C) the willingness of consumers to purchase a product at different prices.
  D) the economic surplus received from purchasing a given quantity of a product.


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Chocorrol77

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Reply #1 on: Jun 29, 2018
Answer to Question 1

D If banks increase their desired reserve ratio, they will make fewer loans, which decreases the size of the money multiplier.

Answer to Question 2

C


MirandaLo

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Reply 2 on: Jun 29, 2018
Excellent

Perkypinki

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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