Author Question: Given a required reserve ratio of 20 percent, a commercial bank that has received a new deposit of ... (Read 88 times)

imanialler · **on:** Jun 30, 2018

Given a required reserve ratio of 20 percent, a commercial bank that has received a new deposit of 100 can make additional loans of

A) 400. B) 0. C) 20. D) 80.

Question 2

Which of the following ideas reflect the Monetarist macroeconomic model?

i) The Monetarist model supports the Classical model, in general.
ii) Decreases in the growth rate of the quantity of money trigger recessions.
iii) Government intervention is an appropriate tool to steady the economy.
A) i and ii B) ii and iii C) i only D) i, ii and iii E) i and iii