If the potential money multiplier in the U.S. is 5, then a $1,000 increase in demand deposits -- your earnings as a tutor in economics -- can potentially create demand deposits (including your $1,000 . of
a. $200
b. $500
c. $2,000
d. $5,000
e. $50,000
D
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Tax expenditures are revenues that
A. are always recouped during tax season. B. only apply to large corporations. C. are needed to get full exemptions. D. are forgone due to preferential tax treatment.
Starting from equilibrium in the ISLM framework, an increase in money demand results in
A) a rise in income and the interest rate. B) a rise in income and a decline in the interest rate. C) a decline in income and the interest rate. D) a decline in income and a rise in the interest rate.
Elasticity of demand is closely related to the slope of the demand curve. The more responsive buyers are to a change in price, the
a. steeper the demand curve will be. b. flatter the demand curve will be. c. further to the right the demand curve will sit. d. closer to the vertical axis the demand curve will sit.
Which of the following economies are most free?
A) Bolivia and Venezuela B) Bangladesh and Pakistan C) Algeria and the Democratic Republic of the Congo D) Hong Kong and Singapore