If the simple money multiplier is 5, the required reserve ratio must be equal to _____
a. 5 percent
b. 0
c. 10 percent
d. 50 percent
e. 20 percent
e
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Perfectly competitive firms are sometimes called price makers because they have significant control over product price
a. True b. False
GDP includes the value of paper clips but does not also count the value of the metal used to make them
a. True b. False Indicate whether the statement is true or false
The nominal interest rate will be less than the real interest rate when
A) the rate of inflation is positive but decreasing. B) the rate of inflation is positive and increasing. C) the rate of inflation is negative. D) the real interest rate is negative.
From 1989 to 2013, the share of wealth for the bottom 90% of wealth holders in the United States
A. increased by almost 10 percentage points. B. increased by more than 45 percentage points. C. remained roughly the same. D. decreased by about 8 percentage points.