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orangeant300Lv1
28 Sep 2019
1. Why is the money multiplier considered to be a potential multiplier rather than an indication of exactly how much multiplication should be expected?
2. If you deposit $6,000 in a bank, calculate how much the bank must keep as required reserves and how much it can loan out if the required reserve ratio was 5percent. What would be the money multiplier?
3. Name four of the six primary functions of the central bank.
4. Explain how monetary policy can be used to close the (a) contractionary gap and (b) inflationary gap.
5. Discuss some the difficulties associated with expansionary monetary policy
6.What is your take on the amount of money politicians spend on political campaigns? Does it have a positive/negative impact on the economy?
1. Why is the money multiplier considered to be a potential multiplier rather than an indication of exactly how much multiplication should be expected?
2. If you deposit $6,000 in a bank, calculate how much the bank must keep as required reserves and how much it can loan out if the required reserve ratio was 5percent. What would be the money multiplier?
3. Name four of the six primary functions of the central bank.
4. Explain how monetary policy can be used to close the (a) contractionary gap and (b) inflationary gap.
5. Discuss some the difficulties associated with expansionary monetary policy
6.What is your take on the amount of money politicians spend on political campaigns? Does it have a positive/negative impact on the economy?
Kelleb MloyiLv2
28 Sep 2019