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Author Question: If households choose to take some fraction of each check they deposit and hold it as currency, then ... (Read 94 times)

KWilfred

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on: Jun 29, 2018
If households choose to take some fraction of each check they deposit and hold it as currency, then the simple deposit multiplier ________ the real-world multiplier.
 
  A) is equal to B) is greater than
  C) bears no relationship to D) is less than

Question 2

What is the difference between stock and flow measures?
 
  What will be an ideal response?


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amy.lauersdorf90

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

B

Answer to Question 2

Stock measures are valued at a particular point in time, while flow measures are valued over a period of time.


KWilfred

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Reply #2 on: Jun 29, 2018
Thank you :)


amy.lauersdorf90

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Reply #3 on: Jun 29, 2018
Happy to help you


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