The government builds a new water-treatment plant. The owner of the company that builds the plant pays her workers. The workers increase their spending. Firms from which the workers buy goods increase their output. This type of effect on spending illustrates
a. the multiplier effect.
b. the crowding-out effect.
c. the Fisher effect.
d. the wealth effect.
a
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Goldsmiths are considered to be the forerunners of modern banks because they: a. had safes to keep gold secure
b. issued gold coins. c. created money by lending out gold reserves. d. created legal tender. e. verified the quality of money.
One of the main roles of a central bank is:
A. managing the nation's money supply. B. coordinating the relationship between banking system and federal government. C. ensuring that banks provide enough loans. D. monitoring federal spending.
Which of the following events would lead to an increase in the supply of labor?
a. The price of a firm's product increases. b. A country experiences an increase in immigrant labor. c. The development of a new labor-augmenting technology. d. All of the above are correct.
Which is not true of the Fed?
A. US central bank B. twin mandates of max employment and price stability C. OMO is its central tool D. totally centralized in DC E. responsible for monetary policy, bank regulation, and financial system stability