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Author Question: Which of the following assumptions made in deriving the simple deposit multiplier is unrealistic? ... (Read 50 times)

Garrulous

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on: Jun 30, 2018
Which of the following assumptions made in deriving the simple deposit multiplier is unrealistic?
 
  A) The Fed sets the required reserve ratio.
  B) The Fed is able to affect the level of reserves in the banking system.
  C) Banks loan out all of their excess reserves.
  D) The simple deposit multiplier is equal to 1 divided by the required reserve ratio.

Question 2

Swiss experience in the 1980s evidences the ________.
 
  A) effectiveness of targeting monetary aggregates
  B) need for discretion in the face of structural changes in the economy
  C) value of fiscal policy over monetary policy
  D) ascendancy of flexible exchange rate regimes over fixed exchange rate systems


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tuate

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Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

B


Garrulous

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

bblaney

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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