The models used in economics:
A) are usually limited to variables that are directly related.
B) are essentially not reliable because they are not testable in the real world.
C) are of necessity unrealistic and have no relationship to the real world.
D) emphasize basic relationships by abstracting from complexities in the everyday world.
Ans: D) emphasize basic relationships by abstracting from complexities in the everyday world.
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The actual money multiplier multiplied by the change in total reserves is the
A) actual change in the money supply. B) potential money multiplier. C) federal funds rate. D) discount rate.
What most accurately describes the implementation of the New Deal?
a. It was implemented in two phases over the course of about eight years. b. Its major reforms were implemented in the first 100 days of Franklin Roosevelt's Presidency. c. The first elements of the New Deal that were implemented were the most politically liberal. d. Most of the reforms were temporary and were phased out by World War II.
Because of ongoing changes in farm technology over the last two centuries, the average farm size in the U.S
a. increased, and the number of farms decreased b. increased, and the number of farms increased c. stayed virtually the same, but the number of farms decreased d. decreased, and the number of farms increased e. decreased, and the number of farms decreased
Suppose the Federal Reserve makes monetary policy more expansionary. In the long run
a. both inflation and the unemployment rate are higher than they were prior to the change in policy. b. inflation is higher and the unemployment rate is the same as it was prior to the change in policy. c. inflation is lower and the unemployment rate is lower than it was prior to the change in policy. d. inflation is lower and unemployment is the same as it was prior to the change in policy.