According to the text, the actual M1 multiplier in the U.S. today is
A. between 0 and 1.
B. between 1.0 and 3.0.
C. over 4.
D. negative.
Answer: B
You might also like to view...
The government enforces property rights by
a. requiring property owners to pay property taxes. b. providing police and courts. c. forcing people to own property. d. providing public parks and recreation facilities.
If a hurricane were to wipe out the majority of the eastern seaboard in the United States, it would likely cause a:
A. short-run supply shock. B. long-run supply shock. C. long-run demand shock. D. short-run demand shock.
What effect do low interest rates have on business investment?
(A) They encourage it. (B) They slow it down. (C) They generally stop it completely. (D) They do not have much effect on essential investment.
Suppose the economy has a recessionary gap. By using an expansionary monetary policy, the Fed can
A. raise the price level alone, but cannot increase real GDP. B. raise real GDP and the price level. C. raise real GDP without increasing the price level. D. raise real GDP and decrease the price level.