If the Banking System Has a Required Reserve Ratio of 40

question 20

Multiple Choice

If the banking system has a required reserve ratio of 40 percent, then the money multiplier is

• A) 2.
• B) 2.5.
• C) 4.
• D) 8.

Understand the concept of price elasticity of supply and how it is represented graphically.

Calculate the price elasticity of supply using the midpoint method.

Identify the characteristics of demand elasticity, including inelastic and elastic demand.

Analyze the effects of market changes, such as supply shocks, on product pricing and total revenue.