Author Question: A bank may make loans until its A) total liabilities are exhausted. B) excess reserves are ... (Read 132 times)

Melani1276 · **on:** Jun 30, 2018

A bank may make loans until its

A) total liabilities are exhausted. B) excess reserves are exhausted.
C) total assets are exhausted. D) required reserves are exhausted.

Question 2

If that the marginal propensity to save (MPS) increased from 0.20 to 0.25, this would cause the multiplier effect to

A) increase. B) decrease.
C) stay the same. D) None of the above is correct.