If the multiplier is 4 and autonomous government spending increases by $100 billion, real GDP will:
A. increase by $100 billion.
B. increase by $400 billion.
C. decrease by $400 billion.
D. increase by $25 billion.
B. increase by $400 billion.
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When Maria deposits $100 in currency in her checkable deposit at Bank of America, the immediate effect is that the quantity of M1 ________ because ________
A) changes only if Bank of America has excess reserves; if the bank does not have excess reserves, the overall effect to M1 is too small to notice B) decreases; checkable deposits are included in M2 but are not included in M1 C) does not change; both currency and checkable deposits are included in M1 D) changes, but the direction of the change cannot be determined; the direction of the change depends on what Bank of America does with the deposit E) increases; both currency and checkable deposits are included in M1
Which of the following is NOT considered a receipt in the balance of payments?
A) exports of goods B) capital inflows C) import of services D) unilateral transfers to U.S. citizens
If the current market price is above the equilibrium price, then:
a. the quantity demanded exceeds the quantity supplied. b. there will be a shortage. c. the quantity supplied will exceed the quantity demanded. d. the price will have to increase to establish equilibrium. e. demand will shift to the left.
Price elasticity of demand is measured by the percentage change in
a. income divide by the percentage change in price b. quantity demanded divided by the percentage change in income c. price divided by the percentage change in quantity demanded d. quantity demanded divided by the percentage change in price e. total revenue divided by percentage change in price