As the reserve ratio increases, the money multiplier
A. increases.
B. decreases.
C. does not change.
D. None of the above is correct..
Answer: B
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The figure above shows the demand for and supply of labor of students in Smallville. If the minimum wage is set at $4 per hour, how many hours do students work?
A) 12,000 hours B) 9,000 hours C) 6,000 hours D) None of the above answers is correct.
Big-push development projects normally require government funding because private sources are unwilling, and often unable, to support such large projects
Indicate whether the statement is true or false
If there is a 5 percent increase in the CPI, then there will most likely be
A) a more than 5 percent rise in the cost of living because of the introduction of new goods. B) a 5 percent rise in the cost of living. C) a less than 5 percent rise in the cost of living because of consumers substituting away from goods whose relative prices rise towards other goods. D) a more than 5 percent rise in the cost of living because of consumers substituting away from goods whose relative prices rise towards other goods. E) a less than 5 percent rise in the cost of living because of falling quality of goods over time.
Describe the differences between capitalism and socialism.
What will be an ideal response?