What is the value of the deposit multiplier in a 100-percent reserve banking system?
A) 0.
B) 1
C) a value between 0 and 1
D) a value greater than 1
Ans: B) 1
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Average variable costs:
A. always trend upward as output increases. B. always trend downward as output increases. C. decrease, then increase as output increases. D. increase, then decrease as output increases.
Behavioral economists suggest that the reason why many consumers tend to stick to one brand in things that they often buy, like food items, is people's tendency to have the:
A. Anchoring effect B. Mental accounting effect C. Status quo bias D. Confirmation bias
The concept of twin deficits refers to ________
A) the phenomenon of simultaneous trade and government budget deficits B) the phenomenon of simultaneous government and private budget deficits C) the phenomenon of simultaneous state and federal budget deficits D) all of the above E) none of the above
Which of the following is true? a. A depression is a recession that is mild and relatively brief
b. The expansions and contractions of real world business cycles last varying lengths of time and often differ in magnitude. c. The timing of business fluctuations is regular and therefore easily predictable. d. During the contractionary phase of the business cycle, the rate of unemployment is generally quite low.