If the Fed Increases the Reserve Ratio from 5 Percent

question 123

Multiple Choice

If the Fed increases the reserve ratio from 5 percent to 12.5 percent,then the money multiplier

• A)decreases from 20 to 8.
• B)decreases from 12.5 to 5.
• C)increases from 8 to 20.
• D)increases from 5 to 12.5.

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Definitions:

75th Percentile

A value below which 75% of the data points in a dataset fall, used as a measure of dispersion.

Symmetric Data

Data that are evenly distributed around the center, showing mirror-image properties on both sides of the median.

Interquartile Range

The difference between the 75th (third quartile) and 25th (first quartile) percentiles, measuring the spread of the middle 50% of data.

Coefficient of Variation

A standardized measure of dispersion of a probability distribution or frequency distribution, expressed as a ratio of the standard deviation to the mean.