If people decide to hold some of their cash and not deposit it,then:
A) the money multiplier overestimates how much money will be created in the economy.
B) the money multiplier underestimates how much money will be created in the economy.
C) the reserve ratio is not fully functioning,and should be raised.
D) the reserve ratio is not fully functioning,and should be lowered.
Correct Answer:
Verified
Q41: The larger is the reserve ratio, the:
A)
Q42: The amount of money available in the
Q43: The definition of M2 includes:
A) cash and
Q48: If the reserve ratio is 5 percent,
Q52: The definition of M1 includes:
A) cash and
Q56: Liquidity refers to:
A)how easy an asset is
Q57: If the money multiplier is approximated to
Q60: If the money multiplier is approximated to
Q69: Comparing _ can give us some sense
Q82: The Federal Reserve System has 12:
A) regional
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