Planned investment must equal actual investment for
A. the MPC to equal the MPS.
B. consumption to equal saving.
C. the economy to be in equilibrium.
D. saving to equal income.
Answer: C
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Everything else held constant, an increase in the excess reserve ratio will mean ________ in the M2 money multiplier and ________ in the M2 money supply
A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease
In Figure 3-4 above, the shift from Ap0 to Ap1 could have been caused by a ________ in T of ________
A) fall, 300 B) fall, 180 C) fall, 500 D) rise, 300 E) rise, 500
Under rent control, tenants can expect
a. lower rent and higher quality housing. b. lower rent and lower quality housing. c. higher rent and a shortage of rental housing. d. higher rent and a surplus of rental housing.
An example of U.S. foreign direct investment would be a:
A. factory in Japan owned by a Canadian citizen. B. factory in Canada owned by a U.S. citizen. C. factory in New Mexico owned by a Japanese citizen. D. All of these are examples of foreign direct investment.