Which of the following is the money multiplier?
A. The required reserve ratio.
B. 1/(1 - the required reserve ratio).
C. 1/(required reserve ratio).
D. 1/(1 - MPC).
Answer: C
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Bureaus are
a. special-interest groups that try to influence legislators b. government agencies that implement legislation c. competing-interest groups that battle federal agencies d. collections of legislators who actively engage in logrolling e. a means of enforcing the median voter model in the decision-making process
Which of the following statements best explains the effects of transfer payments and taxes on aggregate spending?
What will be an ideal response?
What are the advantages and disadvantages to the value-added tax (VAT)?
What will be an ideal response?
Consider the following game. You pick a card from a standard 52-card deck and each time you select an ace, you get $520. For all other cards you must pay $26. This game is not a fair bet.
Answer the following statement true (T) or false (F)