If the money multiplier is approximated to be 2, then the reserve ratio must be:
A. 50 percent.
B. 5 percent.
C. 2 percent.
D. 20 percent.
A. 50 percent.
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In an economy in with no income taxes or imports, the multiplier equals
A) . B) . C) . D) . E) .
An increase in demand for housing will reduce the availability of land for cultivation
a. True b. False Indicate whether the statement is true or false
Demand pull inflation occurs when a nation's:
a. Aggregate demand rises, causing rising prices and rising unemployment. b. Aggregate demand rises, causing rising prices and falling unemployment. c. Aggregate demand rises, which leads to a decrease in aggregate supply and an increase in prices. d. Aggregate supply falls, causing rising prices and rising unemployment.
Which statement is true given the total cost function: Total cost = 10Q + 5Q2 + 100?
A. Total cost at Q = 4 is 120 B. Average total cost at Q = 10 is 70 C. Total cost at Q = 5 is 175 D. Average fixed cost is zero at Q = 100