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:

Ambivalence

The state of having mixed feelings or contradictory ideas about something or someone.

Ambivalence

The state of having mixed feelings or contradictory attitudes towards something or someone.

Reactance

A psychological response where an individual feels a need to regain freedom in response to situations or regulations perceived as limiting personal choice.

Reluctance

A resistance or unwillingness to proceed or to do something.