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For any new deposits into the banking system, the deposit expansion multiplier provides

Sublight2097

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8 years ago

For any new deposits into the banking system, the deposit expansion multiplier provides

For any new deposits into the banking system, the deposit expansion multiplier provides
A) no useful information regarding the potential expansion of the nation's money supply.
B) an exact prediction of the expansion of the nation's money supply.
C) a theoretical limit on the potential expansion of the nation's money supply.
D) an argument that deposits don't effect the nation's money supply at all.

Textbook

The Economic Way of Thinking

Edition: 13^th

Authors: Heyne, Boettke, Prychitko

Read 289 times

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Sydnie

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Sublight2097 Author

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8 years ago

My mind was going in all different directions trying to figure this one out. Thanks so much.

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Sydnie

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8 years ago

I was confident with my answer, glad it was correct.

Oh, and thumbs-up are more than welcome Slight Smile

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