The simple deposit multiplier equals
A. the ratio of the amount of deposits created by banks to the amount of new reserves
B. The formula used to calculate the total increase in checking account deposits from an increase in bank reserves
C. The inverse, or reciprocal, of the required reserve ratio
D. All of the above
Ans: D. All of the above
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Refer to Table 7-6. If the actual terms of trade are 1 belt for 1.5 swords and 50 belts are traded, how many swords will Morocco gain compared to the "without trade" numbers?
A) 0 B) 15 C) 60 D) 75
The natural rate of unemployment is the rate that prevails when structural, frictional, and seasonal unemployment are all equal to zero, and the only source of unemployment is cyclical unemployment
Indicate whether the statement is true or false
The 2001 amendment to the Commodity Credit Corporation (CCC) loan program tends to
A. Reduce downward price swings. B. Intensify upward price swings. C. Reduce upward price swings. D. aggravate downward price swings.
Suppose that Jane earns $10,000 in year 1 and $15,000 in year 2, while Jim earns $15,000 in year 1 and $10,000 in year 2. Is there income equality for the two individuals?
A. The annual data indicate equality, but the two-year data indicate inequality B. The annual data indicate inequality, but the two-year data indicate equality C. Both the annual and the two-year data indicate equality D. Both the annual and the two-year data indicate inequality