Let C = 800 + 0.6y and I = 100. Assume no government or foreign sectors. If investment decreases by 40, then the value of the multiplier is
A) -2.5. B) -1.67. C) 1.67. D) 2.5.
D
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An increase in the value of a currency relative to other currencies is called a(n):
A. overvaluation. B. appreciation. C. evaluation. D. devaluation.
Which of the following statements is true of the scientific method?
A) The scientific method may not reveal a "true" model of the world. B) The scientific method does not require the models to be tested with data. C) The scientific method used by economists and scientists is independent of empiricism. D) The scientific method can help develop accurate models even when data are unavailable.
Suppose that you decide that you no longer want to hold currency, and deposit all of your currency holdings to your checking account. What is the immediate or initial impact of this transaction on M1 and M2?
What will be an ideal response?
Which of the following antebellum banking innovations was the forerunner of the modern Federal Deposit Insurance Corporation (FDIC)?
a. the Suffolk System b. the Safety Fund Act c. the Forstall System d. the bimetallic standard