The simple money multiplier:
a. equals the reciprocal of the required reserve ratio
b. assumes banks hold excess reserves.
c. becomes larger as the required reserve ratio increases.
d. equals required reserves plus excess reserves.
e. equals total reserves minus required reserves.
a
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The total amount that the U.S. government spends to support a covered type of health care service under the Medicare system equals
A) the per-unit subsidy provided to producers of that service times the quantity of the service demanded by consumers at a below-equilibrium out-of-pocket price of the service. B) the per-unit subsidy provided to producers of that service times the equilibrium quantity of the service demanded at the market clearing price that would arise in the absence of Medicare. C) the below-equilibrium, out-of-pocket price that consumers pay for the service times the quantity of the service provided by producers at that out-of-pocket price. D) the below-equilibrium, out-of-pocket price that consumers pay for the service times the quantity of the service demanded by consumers at that out-of-pocket price.
The invention of the telegraph led to the loss of jobs for those who had delivered mail by horse but created jobs for telegraph operators and delivery persons. This is an example of
a. structural unemployment created by efficiency wages. b. structural unemployment created by sectoral shifts. c. frictional unemployment created by efficiency wages. d. frictional unemployment created by sectoral shifts.
A demand curve is defined as the relationship between:
A. the price of a good and the quantity of that good that consumers are willing to buy. B. the price of a good and the quantity of that good that producers are willing to sell. C. the income of consumers and the quantity of a good that consumers are willing to buy. D. the income of consumers and the quantity of a good that producers are willing to sell.
An increase in consumer spending caused by an increase in consumer confidence would cause
A. a movement down and to the right along the aggregate demand curve. B. the aggregate demand curve to shift up and to the right. C. a movement up and to the left along the aggregate demand curve. D. the aggregate demand curve to shift down and to the left.