If the Required Reserve Ratio Is 20 Percent,the Simple Deposit

question 136

Multiple Choice

If the required reserve ratio is 20 percent,the simple deposit multiplier is

• A)5.0.
• B)2.5.
• C)4.0.
• D)10.0.

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Definitions:

Fixed Factor

An input in the production of goods and services that cannot be easily increased or decreased in the short run.

Marginal-cost Schedule

A table or graph showing how the cost of producing one more unit of a good or service varies as the production level changes.

Fixed Costs

Overheads that are unaffected by changes in production or sales quantities, encompassing rent, employee salaries, and insurance payments.

Average Total Cost Curves

Average Total Cost Curves represent the total cost per unit of output, calculated by dividing the total cost by the quantity of output produced.