Vault cash is equal to $8 million, deposits by depository institutions at the central bank are $2 million, the monetary base is $40 million, and bank deposits are $90 million. The money multiplier is equal to
A) 2.5.
B) 3.0.
C) 4.0.
D) 5.0.
B
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Ted quits his $60,000-a-year job to be a stay-at-home dad. What is the opportunity cost of his decision?
A) the value he attributes to the joy of parenting B) at least $60,000 C) zero, since he will no longer be earning a salary D) depends on the "going rate" for stay-at-home dads
The marginal product of labor curve can be shifted to the right by
a. improved technology b. additional physical capital c. improved human capital d. all of the above e. none of the above
The reason Airbus succeeded in the Brander Spencer example is that
A) Boeing made the first move in this strategic game. B) Europeans tend to be better strategists than corn-fed Americans. C) the Airbus actually was a better plane than the Boeing 747. D) U.S. laws actually prohibit U.S. exporters from bribing foreign officials. E) the subsidy removed the advantage that Boeing gained with their head start in production.
A limitation on fiscal policy is time. Which of the following does not impact the timeliness of fiscal policy?
A. It takes time to recognize that the economy is in trouble. B. It will take time to develop a policy strategy and for Congress to pass it. C. All of these impact the timeliness of fiscal policy. D. It will take time for the policy to be implemented and for the many steps in the multiplier process to unfold.