Decisions by depositors to increase their holdings of ________, or of banks to hold excess reserves will result in a ________ expansion of deposits than the simple model predicts
A) deposits; smaller
B) deposits; larger
C) currency; smaller
D) currency; larger
C
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The United States imports shoes from third world countries. This means that if the U.S. economy were closed, the domestic price of goods would be ________ the world price of shoes.
A. greater than B. close to C. less than D. equal to
If the capital-labor ratio equals 1.5 in the steady state, depreciation equals 20, and dilution equals 10, investment per worker equals
A) 15. B) 20. C) 30. D) 45.
If producing more output increases average cost then
A) there are diseconomies of scale. B) there are economies of scope. C) there are diseconomies of scope. D) there are no economies of scale.
Which of the following is not correct?
a. Poverty is long-term problem for relatively few families. b. Measurements of income inequality usually do not include in-kind transfers. c. Measurements of income inequality use lifetime incomes rather than annual incomes. d. Measurements of income inequality would be more meaningful if they reflected permanent rather than current income.