The underlying cause of inflation is
a. labor unions demanding higher wages.
b. businesses charging higher prices.
c. government raising taxes.
d. increasing aggregate demand.
d
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The Taylor rule allows the real long-term interest rate to:
A. be zero. B. be five percent less the inflation rate. C. fluctuate with the natural rate of interest. D. be one percent.
Refer to the following table showing a monopolist's demand schedule: 
If price falls from $20 to $10, then
A. MR = -$30, and demand is inelastic. B. MR = -$10, and demand is inelastic. C. MR = $30, and demand is elastic. D. MR = $10, and demand is elastic. E. none of the above
Voters' Ordered PreferencesAbbyBobCarloPublic parksPublic zooPublic transportationPublic zooPublic transportationPublic parksPublic transportationPublic parksPublic zooIf a pair-wise majority vote was held and the voters' preferences are shown in the table, which of the following is true?
A. The preferences of each member is transitive. B. The outcome of the vote will not change, regardless of voting method. C. The most efficient outcome for the group will occur if pair-wise majority voting was used. D. The collective preferences of the group are transitive.
If your bank faces a 20 percent required reserve ratio and receives a cash deposit of $4,000 into a checkable deposit account, the maximum total amount of money possible after the banking system makes all loans is:
A. $3,200. B. $4,000. C. $16,000. D. $20,000.