A Bank Has Excess Liquid Assets to Lend but Is

question 57

Multiple Choice

A bank has excess liquid assets to lend but is unable to find anyone to borrow the money. This will___________ the size of the money multiplier.

• A) have no effect on
• B) increase
• C) double
• D) reduce

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Definitions:

Economic Immigration

The movement of individuals from one country to another for the purpose of seeking employment or better economic opportunities.

Human Capital

The collective skills, knowledge, and abilities of individuals that can be used to create economic value.

Illegal Immigration

The act of migrating into a country in violation of its immigration laws, often sparking complex social and economic debates.

Complementary Inputs

Goods or services that are used together such that the increase in consumption of one results in an increase in consumption of the other.