Author Question: The reciprocal of the reserve requirement is called the: a. spending multiplier. b. tax ... (Read 57 times)

sam.t96 · **on:** Jun 30, 2018

The reciprocal of the reserve requirement is called the:
a. spending multiplier.
b. tax multiplier.
c. lending multiplier.
d. deposit expansion multiplier.
e. excess reserve multiplier.

Question 2

For a normal good, if incomes rise, we would expect that the equilibrium price will increase and that the equilibrium quantity will increase.
a. True
b. False
Indicate whether the statement is true or false