The demand deposit multiplier is the number by which we must multiply the
A) injection of reserves to get the total change in demand deposits
B) total amount of demand deposits to get the total change in the money supply
C) level of required reserves to get the total change in the money supply
D) total amount of currency in circulation to find total demand deposits
E) change in demand deposits to find the total change in the money supply
Correct Answer:
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Q108: If the required reserve ratio is 0.25
Q109: If the Fed conducts an open market
Q110: The formula for determining changes in demand
Q111: The Fed typically increases the money supply
Q112: If a bank receives a deposit of
Q114: Commercial banks can increase the money supply
Q115: Which of the following is the relationship
Q116: Assume the required reserve ratio (RRR)is 10
Q117: If the Federal Reserve purchases a $2,000
Q118: The demand deposit multiplier is always less
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