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9. If the reserve ratio is 20%, a $100 billion put in the banking system will
multiply to:
A: $0 B: $200 billion
C: $360 billion D: $500 billion 10. If 2016 the Consumer price index (CPI) was 100 and at the end of this year
the CPI was 106 we can assume that the inflation in 2017 increased by A: 0%
B: 106%
C: 100% D: 6% 11. From question 13, we can assume that 2016 was
A: The base year in. B: A great year in. C: Current year .5 D: Experienced a structural change in the In. economy

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Question 9 The correct answer is; d) 500 billion multiplier= 1/ reserve ratio=1/0.20=5 100 x 5=... View the full answer

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