A $1 increase in high-powered money raises the quantity of deposits until
A) all of that increase in high-powered money is held as required reserves.
B) required reserves fall back down to zero.
C) required reserves rise back up to zero.
D) deposits rise by $1.
E) GDP rises by $1 times the income-determination multiplier.
A
You might also like to view...
Refer to Table 10.1. The value of the tax multiplier in this economy is
A) 0. B) -2. C) -4. D) -5.
Social Security taxes are regressive because
A) they apply only to rich people. B) they are not applied to income beyond a certain amount. C) they are applied to welfare recipients. D) they are applied to retired people only.
Refer to the above table. The table gives the combinations of real disposable income and real consumption for a college student for a year. What does planned real saving equal when real disposable income equals? $12,000?
Real Disposable Income Planned Real Consumption ?$0 $3,000 ?2,000 4,400 ?4,000 5,800 ?6,000 7,200 ?8,000 ? 8,600 ?10,000 10,000 ?12,000 11,400 ?14,000 ? 12,800 A) 0 B) 600 C) 3,000 D) 11,400
The most powerful tool unions have at their disposal when bargaining with management is
A) the Taft-Hartley Act. B) the ability to strike. C) the secondary boycott. D) the power of pure competition.