A change that increases the real money supply relative to real money demand causes
A. the LM curve to shift up and to the left.
B. the IS curve to shift down and to the left.
C. the LM curve to shift down and to the right.
D. the IS curve to shift up and to the right.
Answer: C
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The federal government facilitated suburbanization by providing _______________ and ___________________.
Fill in the blank(s) with the appropriate word(s).
The deposit-creation formula can be defined as
A. one minus the required reserve ratio. B. the same as the GDP income multiplier. C. the reciprocal of the required reserve ratio. D. one plus the required reserve ratio.
The government wishes to close an inflationary gap by reducing national income by $400 billion. Assuming a tax multiplier of 4 and an income multiplier of 5, which of the following policy prescriptions would reduce the inflationary gap by $400 billion?
a. decreasing government spending by $400 billion and increasing taxes by $400 billion b. decreasing government spending by $160 billion and decreasing taxes by $100 billion c. decreasing government spending by $40 billion and decreasing taxes by $40 billion d. decreasing government spending by $80 billion and keeping taxes the same e. doing absolutely nothing to the economy
If there are 10 job losers, 12 job leavers, 13 reentrants, and 12 new entrants, then there are __________ unemployed persons
A) 35 B) 47 C) 25 D) 37 E) There is not enough information to answer the question.