For any new deposits into the banking system, the deposit expansion multiplier provides
A) no useful information regarding the potential expansion of the nation's money supply.
B) an exact prediction of the expansion of the nation's money supply.
C) a theoretical limit on the potential expansion of the nation's money supply.
D) an argument that deposits don't effect the nation's money supply at all.
C
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The benefits of economic growth are ________, while the costs of economic growth are ________.
A. increased output per person; too small for concern B. more current consumption; less future consumption C. increased output per person; less future consumption D. increased output per person; the consumption sacrificed in exchange for capital formation
There are 9 firms in an industry with market shares in the table above. Calculate the HHI for the industry. What kind of market does this operate in and why?
What will be an ideal response?
A once-and-for-all jump in the price level would initially cause a(n)
a. upward shift in the consumption function. b. upward movement along the consumption function. c. downward shift in the consumption function. d. downward movement along the consumption function.
Assume the aggregate supply curve is horizontal and the economy is experiencing a recession. Which of the following is most likely to occur if the Fed pursues expansionary monetary policy?
A. The equilibrium price level and output will both decrease. B. The equilibrium price level will increase but output will stay the same. C. The equilibrium output will increase but the price level will stay the same until full employment is reached. D. The equilibrium price level and output will both increase.