Other things being equal, if the reserve ratio is raised from 10 percent to 20 percent
A. minimum potential value of the money multiplier falls from 10 to 20.
B. minimum potential value of the money multiplier rises from 0.10 to 0.20.
C. maximum potential value of the money multiplier rises from 10 to 20.
D. maximum potential value of the money multiplier falls from 10 to 5.
Answer: D
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Monetarists are of the opinion that the private economy is inherently
A. unstable and the public sector should be small in scope. B. unstable and the public sector should be large in scope. C. stable, but that the public sector should be large in scope. D. stable and that the government sector should be small in scope.
Social Security is financed:
A. by state income tax revenues. B. by payroll taxes on employees and employers. C. by federal excise taxes. D. out of general tax revenues.
Use the following graph for a perfectly competitive firm to answer the next question.
At its short-run equilibrium point, the firm's
A. marginal revenue equals its average variable cost. B. marginal cost equals its average fixed cost. C. marginal revenue equals its average total cost. D. marginal cost equals its average variable cost.
Data for the United States traced out an almost perfect Phillips curve for much of the
a. 1960s. b. 1970s. c. 1980s. d. 1990s.