If the simple money multiplier is 5, the required reserve ratio ...

[jace]

If the simple money multiplier is 5, the required reserve ratio must be equal to _____.
 a. 5 percent
 b. 0
 c. 10 percent
  d. 50 percent
  e. 20 percent

Question 2

Which of the following is illustrated by the distance between the aggregate expenditure line and the 45-degree line at each level of real GDP?
 a. The level of saving in an economy
 b. Unplanned inventory change
 c. Planned investment undertaken in an economy
  d. The marginal propensity to save
 e. The marginal propensity to consume

[memslove]

Answer to Question 1

e

Answer to Question 2

b