This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The nominal interest rate cannot fall below A) the real interest rate. B) the rate of growth in ... (Read 150 times)

Arii_bell

  • Hero Member
  • *****
  • Posts: 596
on: Jun 30, 2018
The nominal interest rate cannot fall below
 
  A) the real interest rate.
  B) the rate of growth in the money stock.
  C) 2.
  D) zero.

Question 2

If the required reserve ratio is 10 and the Fed purchases 20 million worth of securities, what is the simple deposit multiplier and what happens to the amount of deposits in the banking system? Assume that banks do not hold excess reserves and the
 
  public does not change its currency holdings.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

enass

  • Sr. Member
  • ****
  • Posts: 380
Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

The simple deposit multiplier is 1/0.10 = 10. The amount of deposits changes by 20 million  10 = 200 million.


Arii_bell

  • Hero Member
  • *****
  • Posts: 596
Reply #2 on: Jun 30, 2018
Thank you


enass

  • Sr. Member
  • ****
  • Posts: 380
Reply #3 on: Jun 30, 2018
No problemo


« previous next »
 

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Did you know?

The human body's pharmacokinetics are quite varied. Our hair holds onto drugs longer than our urine, blood, or saliva. For example, alcohol can be detected in the hair for up to 90 days after it was consumed. The same is true for marijuana, cocaine, ecstasy, heroin, methamphetamine, and nicotine.

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

THE RATE OF PHOTOSYNTHESIS THE RATE OF PHOTOSYNTHESIS
Growth and Development Growth and Development
How to calculate simple interest (Part 3) How to calculate simple interest (Part 3)
Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ... Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ...
Compute the rate of discount allowed on a rontor -tiller that lists for K 341 and is sold for K ... Compute the rate of discount allowed on a rontor -tiller that lists for K 341 and is sold for K ...
Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price. Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price.
Video: Interview with Person who has Schizophrenia

For a complete list of videos, visit our video library