Multiple Choice
Vault cash is equal to $8 million,deposits by depository institutions at the central bank are $2 million,the monetary base is $40 million,and bank deposits are $90 million.The money multiplier is equal to
A) 2) 5.
B) 3) 0.
C) 4) 0.
D) 5) 0.
Correct Answer:
Verified
Correct Answer:
Verified
Q3: Changes in reserve requirements directly and immediately
Q4: In response to an unanticipated tightening of
Q5: The Fed can reduce the money supply
Q6: The Taylor rule relates<br>A)the nominal Fed funds
Q7: Monetarists suggest doing which of the following?<br>A)Maintain
Q9: Last year,the currency-deposit ratio was 0.2 and
Q10: Which of the following is the Federal
Q11: Intermediate targets are<br>A)identical to instruments.<br>B)macroeconomic variables that
Q12: Suppose the Fed cares only about keeping
Q13: The money supply is $12.5 million,currency held