This topic contains a solution. Click here to go to the answer

Author Question: If people never withdrew money, how much money could the banking system create given a new amount of ... (Read 132 times)

codyclark

  • Hero Member
  • *****
  • Posts: 538
If people never withdrew money, how much money could the banking system create given a new amount of deposits, assuming that excess reserves were zero?
 
  A) the amount of new deposits multiplied by the money multiplier
  B) as much as the new deposits
  C) zero
  D) the amount of new deposits multiplied by the reserve ratio

Question 2

Refer to the scenario above. The increase in output due to a one-unit increase in capital is smallest at point ________.
 
  A) A B) B C) C D) D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

olderstudent

  • Sr. Member
  • ****
  • Posts: 339
Answer to Question 1

A

Answer to Question 2

D




codyclark

  • Member
  • Posts: 538
Reply 2 on: Jun 30, 2018
Wow, this really help


amynguyen1221

  • Member
  • Posts: 355
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

Asthma cases in Americans are about 75% higher today than they were in 1980.

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Did you know?

The familiar sounds of your heart are made by the heart's valves as they open and close.

Did you know?

All adults should have their cholesterol levels checked once every 5 years. During 2009–2010, 69.4% of Americans age 20 and older reported having their cholesterol checked within the last five years.

For a complete list of videos, visit our video library