If the Currency Drain Is Zero, Which of the Following

question 350

Multiple Choice

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

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Definitions:

Path-Goal Leadership Theory

The Path-Goal Leadership Theory posits that leaders can enhance employee performance and satisfaction by clarifying paths to goals, removing obstacles, and providing or increasing rewards for goal achievement.

Directive Leadership

A leadership style where the leader provides clear instructions, expectations, and guidance on what should be done and how it should be done.

Supervisory Leadership

The act of guiding and managing a team or division within an organization through direct oversight and setting clear expectations.

Integrity Leadership

A leadership approach based on honesty and consistency of values, actions, and ethical principles.