If the Currency Drain Ratio Is Zero, Which of the Following

question 96

Multiple Choice

If the currency drain ratio is zero, which of the following situations leads to the greatest total increase in the quantity of money?

• A)an increase in the monetary base of $100,000 when the desired reserve ratio is 50 percent
• B)an increase in the monetary base of $200,000 when the desired reserve ratio is 20 percent
• C)an increase in the monetary base of $120,000 when the desired reserve ratio is 10 percent
• D)an increase in the monetary base of $100,000 when the desired reserve ratio is 5 percent
• E)an increase in the monetary base of $250,000 when the desired reserve ratio is 15 percent

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Definitions:

Concrete Operational

Describes a stage in Piaget's theory of cognitive development during which children develop logical but not yet abstract thinking.

Preoperational

The second stage in Piaget's theory of cognitive development, characterized by symbolic thinking and egocentrism in children aged 2 to 7 years.

Intellectual Skills

Abilities related to thinking, reasoning, problem-solving, and learning.

Qualitative

Pertains to research or data that focuses on descriptions and characteristics that are observed but not measured.