If the Reserve Ratio Is Designated by "R," the Amount

question 113

True/False

If the reserve ratio is designated by "r," the amount of deposits a bank can lend out is equal to [D x (1 - r)].

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Definitions:

Total Consumption

The aggregate amount of goods and services consumed by individuals, households, and others in an economy during a given period.

Consumption Function

An economic formula representing the relationship between total consumption and gross national income.

Income Rises

An increase in the amount of money received by households or individuals over a period of time.

Level Of Consumption

The total amount of goods and services consumed by households over a certain period.