Within the Keynesian cross, the adjustment towards equilibrium occurs through:
A) inflation.
B) inventories.
C) interest rates.
D) none of the above.
B
You might also like to view...
Deposits are examples of a bank's
A) liabilities. B) assets. C) net worth. D) balance sheet.
If Mr. McLean thinks the last dollar spent on bowling yields more satisfaction than the last dollar spent on hamburgers, and McLean is a utility-maximizing consumer, he should:
a. bowl less, so the marginal satisfaction from expenditures in this area will increase. b. spend more on hamburgers, so total satisfaction from that activity will increase. c. eliminate spending on hamburgers. d. bowl more and spend less on hamburgers.
According to the rational expectations school, people base their expectations about inflation on: a. the announcement of a change in policy
b. weighted averages of previous inflation rates, with the most distant getting the heaviest weight. c. all information available to them. d. changes in monetary policy only. e. changes in both monetary and fiscal policy.
If the reserve ratio is 20 percent, then the money multiplier is approximated to be:
A. 20. B. 5. C. 10. D. 2.