The smaller the currency drain, the
A) smaller the increase in the quantity of money from an increase in reserves.
B) more likely it is that the banking system will hold a larger proportion of excess reserves.
C) the smaller the effect of a change in the discount rate.
D) larger the increase in the quantity of money from an increase in reserves.
D
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The above table contains information about the nation of Syldavia. There are no income taxes or imports in this nation. When real GDP is $15 billion, firms' inventories experience an unplanned
A) increase of $5 billion. B) decrease of $10 billion. C) increase of $4 billion. D) decrease of $1 billion. E) increase of $10 billion.
Equations for C, I, G, and NX are given below. If the equilibrium level of GDP is $21,500, what is the marginal propensity to consume?
C = 1,500 + (MPC)Y I = 1,000 G = 2,000 NX = -200 A) 0.67 B) 0.75 C) 0.8 D) 0.9
The non-democratic character of the Board of Governors of the Federal Reserve System helps support ________
A) the political business cycle B) the time-inconsistency problem C) its independence D) rational expectations of Federal Reserve behavior
When economic profits are negative, accounting profits could be:
A. positive. B. negative. C. zero. D. All of these are possible.