A $1 Increase in High-Powered Money Raises the Quantity of Deposits

question 133

Multiple Choice

A $1 increase in high-powered money raises the quantity of deposits until

• A)all of that increase in high-powered money is held as required reserves.
• B)required reserves fall back down to zero.
• C)required reserves rise back up to zero.
• D)deposits rise by $1.
• E)GDP rises by $1 times the income-determination multiplier.

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Definitions:

Strategic Indicators

Metrics or measures used to assess the performance or outcome of an organization's strategy.

Key Indicator

A measurable variable used to evaluate the success or progress of an organization's objectives or performance.

Competitive Intelligence

The gathering and analysis of information about competitors, their activities, and industry trends to support strategic decision-making.

Canadian Standards Association

It is a standards organization which develops standards in 57 areas and provides certification and testing services to ensure the compliance of products to declared standards.