If the currency drain ratio is 0.2 and the desired reserve ratio is 0.03, the money multiplier is
A) 5.22. B) 6.67. C) 0.76. D) 4.46. E) 3.23.
A
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Inflation shocks and shocks to potential output are called ________ shocks.
A. aggregate supply B. aggregate demand C. monetary policy D. fiscal policy
If the value of the multiplier is smaller, the economy
a. becomes less stable because automatic stabilizers have a larger impact. b. becomes more stable because automatic stabilizers have a larger impact. c. becomes more volatile because automatic stabilizers have a lesser impact. d. is subject to larger fluctuations because automatic stabilizers have no impact.
If the base year is 2010, the nominal GDP for 2015 is $12,800.5 billion, and the GDP deflater for 2015 is 102.3, what is the real GDP for 2015 compared to 2010?
a. $126,982 million b. $12,512.7 billion c. $13,094.4 billion d. $1,269,820 trillion
One key difference between national income and net domestic product is
A. net domestic product includes indirect business taxes and transfers while national income does not. B. net domestic product represents income that is available to individuals while national income does not. C. net domestic product does not include income earned by the factors of production while national income does. D. net domestic product only includes the net additions to the economy's stock of capital while national income does not.