The size of the effect of a given deposit of cash into a demand deposit account on the money supply is greater:
a. the greater the fraction of money people want to hold as currency and the greater the fraction of deposits banks want to hold as excess reserves.
b. the greater the fraction of money people want to hold as currency and the smaller the fraction of deposits banks want to hold as excess reserves.
c. the smaller the fraction of money people want to hold as currency and the greater the fraction of deposits banks want to hold as excess reserves.
d. the smaller the fraction of money people want to hold as currency and the smaller the fraction of deposits banks want to hold as excess reserves.
d
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A decrease in the expected inflation rate will
A) increase the inflation rate. B) shift the short-run Phillips curve to the left. C) increase the unemployment rate. D) shift the short-run Phillips curve to the right.
Personal income is defined as
A) national income less retained earnings plus transfer payments and plus interest on government bonds. B) national income less depreciation. C) national income less personal taxes. D) national income plus retained earnings less transfer payments and less interest on government bonds.
Which of the following would be counted as investment in the national income accounts?
a. the purchase of a newly issued stock b. the purchase of a newly built apartment house c. the purchase of a newly minted coin d. the payment of tuition at a private college
The language of economics is
a. needlessly arcane. b. valuable because it provides a new and useful way of learning about the world. c. easy to learn within a day. d. unnecessary to learn for a thorough understanding of economics.