How must banks use the deposit multiplier when calculating their reserves?

July 7, 2024 No Comments

A: The maximum amount of checkable deposits a bank creates through loaning money cannot exceed the amount of the bank’s reserves multiplied by the deposit multiplier. The deposit multiplier is part of the money supply expansion activity by a bank made possible with fractional reserve

How must banks use the deposit multiplier when calculating their reserves?

July 7, 2024 No Comments

How reliable or accurate is marginal analysis?

June 30, 2024 No Comments

Marginal analysis is designed to show how economic reasoning allows actors to accomplish more by understanding limits on what can be accomplished. The focus of marginal analysis is on possible incremental adjustments in resource allocation. As the underlying technique in cost-benefit analysis, marginal analysis is

How reliable or accurate is marginal analysis?

July 7, 2024 No Comments

How reliable or accurate is marginal analysis?

July 7, 2024 No Comments

How strongly does government regulation impact the utilities sector?

June 30, 2024 No Comments

A: Government regulation dominates the utilities sector. The majority of all American consumers receive their utilities services from private companies that are regulated at the state level by public service commissions. Larger federal or state power utilities are run directly by the government, as are

How strongly does government regulation impact the utilities sector?

July 7, 2024 No Comments

How strongly does government regulation impact the utilities sector?

July 7, 2024 No Comments

How successful have “dove” Federal Reserve heads been in the past when it comes to managing the economy?

June 30, 2024 No Comments

A: Until the financial crisis of 2007-2008, it seemed as though dovish chairs of the Federal Reserve had used monetary policy to effectively keep down unemployment without noticeable negative consequences. The “Great Moderation” ushered in by Alan Greenspan was an enormous success story, until the

How successful have “dove” Federal Reserve heads been in the past when it comes to managing the economy?

July 7, 2024 No Comments

All Rights Reserved