The money multiplier:
A. Is the number of deposit dollars the banking system can create from $1 of excess reserves. B. Decreases as the required reserve ratio decreases.
C. Is equal to excess reserves plus required reserves.
D. Is equal to the required reserve ratio times transactions deposits.
C. Is equal to excess reserves plus required reserves.
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Consider the indifference maps shown above. If eyeglass frames and eyeglass lenses were perfect complements, your indifference curves between them would look like those in
A) Figure A. B) Figure B. C) Figure C. D) Figure D.
Which of the following will most likely occur during the expansionary phase of a business cycle?
What will be an ideal response?
If the tax multiplier is -4, the MPS is
A. 0.2. B. 0.3. C. 0.4. D. 0.5.
An imperfectly competitive firm faces a demand curve that is ________, while a perfectly competitive firm faces a demand curve that is ________.
A. perfectly inelastic; downward sloping. B. perfectly inelastic; perfectly elastic. C. horizontal; downward sloping. D. downward sloping; perfectly elastic.