The monetary multiplier is 3 and the change in the monetary base is $100,000. How much will the quantity of money increase?
A) $300,000
B) $200,000
C) $100,000
D) $70,000
E) $33,333
A
You might also like to view...
For developing countries:
A. encouraging imports only tends to be more successful than encouraging exports. B. trade can be a major source of development. C. it is best if they avoid trade until ready to compete globally. D. encouraging exports only tends to be more successful than encouraging imports.
The change in a firm's revenue as a result of hiring one more worker
A) is equal to the firm's marginal cost. B) will be negative if the demand for the firm's output is inelastic. C) is the definition of the marginal revenue product of labor. D) is the definition of the marginal product of labor.
During a recession, total public assistance payments and unemployment compensation payments automatically increase while income taxes automatically decrease. Which of the following best describes the effect of these changes on aggregate demand? a. Aggregate demand will be less than it would be without these automatic stabilizers. b. Aggregate demand will be the same as it was before the
recession. c. Aggregate demand will be more than it would be without these automatic stabilizers. d. Aggregate demand will be greater than it was before the recession.
A credit item in the balance of payments is
A. any imported item. B. any loan given out by the country. C. an item for which the country must be paid. D. an item that creates a monetary claim owed to a foreigner.