Suppose the desired reserve ratio is 20 percent and there is no currency drain. Then a 1 increase in the monetary base leads to the banking system to increase the quantity of money by
A) 0.02.
B) 4.
C) 5.
D) 20.
E) 2.
Question 2
An economic system in which the government decides what, how, and for whom to produce, directs workers to jobs, and owns all the land and capital is
A) centrally planned socialism.
B) market capitalism.
C) mixed economy.
D) supported by economists as the best system available.
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