If Households Choose to Take Some Fraction of Each Check

question 53

Multiple Choice

If households choose to take some fraction of each check they deposit and hold it as currency,then the simple deposit multiplier ________ the real-world multiplier.

• A)is greater than
• B)is less than
• C)is equal to
• D)bears no relationship to

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Definitions:

Acquisition

The process of obtaining control of another company or business entity through purchase or merger.

Sovereign Wealth Fund

A state-owned investment fund comprised of pools of money derived from a country's reserves, used to invest in various financial assets.

Government-Owned Companies

Government-Owned Companies are businesses that are owned and operated by the government, rather than private individuals or organizations.

Private Equity Fund

A fund that pools money from investors to acquire equity ownership in companies with the goal of earning a return on the investments.