The left side of an account is used to record which of the following?
a. Debit or credit depending on the type of account
b. Increases
c. Credits
d. Debits
Answer: b. Increases
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Every dollar added to the total reserves of the commercial banking system
A) compels the banks to reduce their loans by more than a dollar. B) compels the banks to expand their loans by more than a dollar. C) enables the banks to expand their loans by more than a dollar. D) enables the banks to expand their loans by one dollar. E) is one less dollar in the hands of the public.
Refer to Table 7-6. If the actual terms of trade are 1 belt for 1.5 swords and 50 belts are traded, how many swords will Estonia gain compared to the "without trade" numbers?
A) 25 B) 75 C) 100 D) 125
Under a consumption-based theory of the pricing of risky assets, uncertain returns on such an asset should be discounted by a "stochastic discount factor" that takes into account: a. the mean and standard deviation of the uncertain return
b. whether the uncertain return has a normal distribution. c. both the nominal and real interest rates. d. the rate of time preference and present and future marginal utility of wealth.
Both Keynesians and non-Keynesians now recognize
a. the limitations of automatic stabilizers as a stabilization tool. b. the adverse effects of high marginal tax rates on economic growth. c. the difficulties involved in timing discretionary changes in fiscal policy in a stabilizing manner. d. the highly expansionary impact of budget deficits.