When the Fed supplies the banking system with an extra dollar of reserves, deposits increase by more than one dollar—a process called
A) extra deposit creation.
B) multiple deposit creation.
C) expansionary deposit creation.
D) stimulative deposit creation.
B
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Refer to the figure above. Which of the following combinations is attainable but inefficient?
A) A B) B C) C D) D
The idea that business firms attempt to maintain a fixed relation between their stock of capital and their expected sales is the basis for the
A) accelerator hypothesis of net investment. B) permanent-income hypothesis. C) life cycle hypothesis. D) adaptive expectations approach.
The multiplier tells us the relationship between
A. the exchange rate and the level of imports. B. the interest rate and the level of investment expenditure. C. a change in autonomous spending and the resulting change in equilibrium real GDP. D. the exchange rate and the level of exports.
Medicaid is
A. a public health insurance program for the poor. B. a private health insurance program for government employees. C. a private health insurance program for the poor. D. a public health insurance program for the elderly.