If the Fed Were to Decrease the Required Reserve Rate

question 123

Multiple Choice

If the Fed were to decrease the required reserve rate from ten percent to five percent, the simple deposit expansion multiplier would:

• A)Double
• B)Decrease by 5 percent
• C)Increase by a factor of five
• D)Be half as large as it was before the reduction

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Definitions:

Mediocre Social Skills

Refers to average or below-average ability in interpersonal communication and interaction.

Conventional

Adhering to accepted standards and norms of behavior or thinking, often characterized by a lack of originality or willingness to change.

Realistic

Pertaining to the acceptance and representation of things as they are true to life or practical.

Specific Learning Disability

A type of neurodevelopmental disorder that affects a person's ability to learn a specific academic skill, such as reading, writing, or math, despite having normal intelligence.