If the required reserve ratio is 5, what is the value of the ...

[Garrulous]

If the required reserve ratio is 5, what is the value of the simple deposit multiplier?
 
  A) 0.05
  B) 0.20
  C) 5
  D) 20

Question 2

Typically, consumers respond to an increase in (expected) future income by ________.
 
  A) shifting the budget constraint to the left
  B) increasing both current and future consumption
  C) saving more to increase future wealth
  D) waiting until the income is received before changing their consumption behavior

[cassie_ragen]

Answer to Question 1

D

Answer to Question 2

B