The simple money multiplier if the banks in Ruritania have a required reserve ratio of eight percent will be 12.5.
<h3>What is the significance of money multiplier?</h3>
Money multiplier can be referred to or considered as the total derived after division, finding the reciprocal of the required reserve ratio of an any commercial bank or any financial institution as such. In the above case, the money multiplier will be computed as 1 / 8 × 100 = 12.5.
Therefore, the significance regarding the simple money multiplier has been aforementioned.
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C. Because it’s showing you the different things that lived long time
Economists use the concept of ceteris paribus to examine a change in one variable in a model, while assuming that all other variables remain constant.
<h3>What is the meaning of ceteris paribus?</h3>
This is used in economics to refer to the fact that all has to be equal or that all conditions have been met. The change in one variable is able to bring about a resultant change in the particular equation model while he hold all other factors in the economics model fixed.
Hence we have to say that Economists use the concept of ceteris paribus to examine a change in one variable in a model, while assuming that all other variables remain constant.
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An agent would be the appropriate term to describe a <span> functional middleman who does not take title to products and who is compensated by commissions paid by producers. In addition, agents are the ones who bridges the producer to the wholesaler, then eventually to the consumers.</span>