1261EconomicsMedium
If the banks in an economy operate with a reserve ratio of 20 percent then the money multiplier is?
A25
MCQs
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Correct answer
B. 5
Explanation
The correct answer is 5.
Correct answer
A. Hinduism
Explanation
The correct answer is Hinduism.
Correct answer
D. A lower equilibrium wage and higher quantity of labour
Explanation
The correct answer is A lower equilibrium wage and higher quantity of labour.
Correct answer
C. less than 1
Explanation
The correct answer is less than 1.
Correct answer
B. Phillips curve
Explanation
The Phillips curve shows an inverse relationship between inflation and unemployment—when inflation rises, unemployment tends to fall, and vice versa. Okun’s law relates unemployment and GDP growth. Say’s law states that supply creates its own demand. A U-shape curve is not relevant in this context.
Correct answer
B. all of the above
Explanation
The correct answer is all of the above.
Correct answer
A. 7000
Explanation
The correct answer is 7000.
Correct answer
C. social rules of behavior
Explanation
The correct answer is social rules of behavior.
Correct answer
C. deceiving since Koreans eventually spend the dollars on Pakistani goods
Explanation
The correct answer is deceiving since Koreans eventually spend the dollars on Pakistani goods.
Correct answer
A. Increase the nation’s aggregate income
Explanation
The correct answer is Increase the nation’s aggregate income.