Suppose That in Mysore,the Reserve-Deposit Ratio Is Res = 0

question 66

Multiple Choice

Suppose that in Mysore,the reserve-deposit ratio is res = 0.5 - 2i,where i is the nominal interest rate.The currency-deposit ratio is 0.2 and the monetary base equals 100.The real quantity of money demanded is given by the money demand function L(Y,i) = 0.5Y - 10i,where Y is real output.Currently,the real interest rate is 5% and the economy expects an inflation rate of 5%.The money multiplier equals

• A)2.00.
• B)2.40.
• C)3.00.
• D)4.00.

---

Definitions:

May Pole

A traditional springtime folk practice involving a tall pole adorned with flowers and ribbons around which people dance, often to celebrate May Day.

Group Development

The various stages a group goes through from formation to termination, including forming, storming, norming, performing, and adjourning.

Open Membership

A policy or practice where an organization allows anyone to join without restrictions based on criteria like background, qualifications, or membership fees.

Closed Membership

A type of group setting where participation is restricted to a specific set of members who meet certain criteria, without allowing new members to join freely.