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Sublight2097 Sublight2097
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8 years ago
Suppose you find $1000 in your attic and decide to deposit it all into your local bank, which must hold 20% as required reserves. The deposit expansion multiplier suggests that this $1,000 "injection" of new money will, in reality, most likely
A) increase the money supply by more than $1,000.
B) increase the money supply by less than $1,000.
C) increase the money supply by exactly $1,000.
D) increase the money supply by exactly $5,000.
Textbook 
The Economic Way of Thinking

The Economic Way of Thinking


Edition: 13th
Authors:
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VincenzoDVincenzoD
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8 years ago
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Sublight2097 Author
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#2
8 years ago
I've noticed they use a lot of trickery with their questions. Thank you for your input.
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#3
3 years ago
Thank you
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