The reserve requirement is 0.10. What is the simple deposit multiplier?

What are explicit costs? What are implicit costs?

What will be an ideal response?

All of the following will cause an outward shift of the investment function EXCEPT

A) innovation that improves production efficiency at every level of output. B) a reduction in business taxes. C) business people becoming optimistic about the future. D) a decrease in the interest rate.

Which is largest in an advanced economy like the U.S.?

A. GDP measured by income B. GDP measures by spending C. GDP measured by production D. the previous three have the same value

The market for bonds is initially described by the supply of bonds - S0, and the demand for bonds - D0, with the equilibrium price and quantity being P0 and Q0. An increase in the nation's wealth, all else constant, would cause the 

A. Bond supply curve to shift to S1. B. Bond supply curve to shift to S2. C. Bond demand curve to shift to D1. D. Bond demand curve to shift to D2.