Increase in deposits=(1/rr)*increase in reserves
24,000=(1/rr)*600
1/rr=40
rr=1/40
rr=0.025
rr=0.025*100=2.5%
Answer-2.5%
Atte 24/7P 2 pts 3243 uctions actions NO Question 24 Using the simple deposit multiplier model,...
serves. What is the simple deposit multiplier? The simple deposit multiplier is O A. the ratio of the amount of deposits created by banks to the amount of new reserv OB. the ratio of the amount of deposits created by banks to the amount of already existing reserves. OC. the ratio of the amount of new reserves to the amount of deposits created by banks. OD. the percentage of checkable deposits that the Fed specifies that banks must hold as...
rect Question 2 0/1 pts The money supply equals monetary base plus money multiplier. • monetary base divided by money multiplier. money multiplier divided by monetary base. money multiplier multiplied by monetary base. Incorrect Question 3 0/1 pts If the MI multiplier is 3 and the Fed engages in open-market purchases in the amount of S3 billion. then monetary base will increase by S3 billion decline by S9 billion. decline by S3 billion. • increase by $9 billion. rect Question...
Question 10 1 pts Assume that velocity is stable during a particular year. If the Fed increases the money supply by 2.5% and real GDP changes by 2.5%, the price level will change by: O approximately 21%. O approximately 4%. O approximately 10%. O approximately 2%. exactly 0%. Question 11 1 pts Suppose that the reserve requirement is 10%, and Jane Doe makes a deposit of $800,000 at her local bank. The maximum possible change in checkable deposits is and...
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The LM curve represents A) the single level of output where the goods market is in equilibrium. B) the combinations of output and the interest rate where the goods market is in equilibrium. C) the single level of output where financial markets are in equilibrium. D) the combinations of output and the interest rate where the money market is in equilibrium. E) none of...
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The LM curve represents A) the single level of output where the goods market is in equilibrium. B) the combinations of output and the interest rate where the goods market is in equilibrium. C) the single level of output where financial markets are in equilibrium. D) the combinations of output and the interest rate where the money market is in equilibrium. E) none of the...
Questions 1-5 Beta's National Accounts in 2019 1. Net Domestic Product 2. Exports 3. Personal income taxes 4. Government expenditures 5. Consumption expenditures 6. Gross investment 7. Imports 8. Corporate profits before taxes 9. Personal disposable Income 10. Net Investment 11. Capital stock on January 1, 2019 Billions of $ 2250 100 300 600 1400 250 75 350 1900 225 30000 1. GDP was a) $2175 billion b) $2275 C) $2300 d) $2325. Depreciation was a) So billion b) $25...
1. When it comes to financial matters, the views of Aristotle can be stated as: a. usury is nature’s way of helping each other. b. the fact that money is barren makes it the ideal medium of exchange. c. charging interest is immoral because money is not productive. d. when you lend money, it grows more money. e. interest is too high if it can’t be paid back. 2. Since 2008, when the monetary base was about $800 billion,...
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Budgetary Policy and Economic Growth Errol D'Souza The share of capital expenditures in government expenditures has been slipping and the tax reforms have not yet improved the income...