The actual multiplier for the U.S. economy is estimated to be
a. about 10.
b. approximately 5.
c. between 3 and 4.
d. less than 2.
d
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Jan's Dry Cleaning holds $10,000 on a typical day, although only $2,000 is essential for carrying out business. Making a midday deposit is estimated to reduce cash holdings to $8,000 and cost an extra $80 per year in lost production. If, in addition, an armored car service is engaged to pick up cash more frequently for a fee of $120 per year, cash holdings will be further reduced to $6,000 per day. Employing a computerized cash management service for an annual fee of $180 would reduce cash holdings further to $4,000. If any reduction in cash holdings will be used to purchase government bonds earning 5%, then how much money should Jan's hold?
A. $6,000 B. $10,000 C. $8,000 D. $4,000
In perfect competition, what is the relationship between the demand for the firm's output and the market demand?
What will be an ideal response?
Where the planned expenditure and the 45-degree lines intersect, the economy is ________ equilibrium, with unplanned inventory investment equal to ________
A) in, zero B) out of, zero C) in, planned inventory investment D) in, autonomous planned expenditure E) out of, autonomous planned expenditure
The "metering" scheme refers to
a. Discriminating consumers through the amount of product bought b. Giving away core technology and making up for it through higher margins on secondary sales c. An indirect method of price discrimination d. All of the above