When the economy experiences inflation, people demand a:
A. lower quantity of money, shifting the money demand curve leftward.
B. higher quantity of money, shifting the money demand curve leftward.
C. lower quantity of money, shifting the money demand curve rightward.
D. higher quantity of money, shifting the money demand curve rightward.
D. higher quantity of money, shifting the money demand curve rightward.
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Assuming all excess reserves are loaned out, if the reserve ratio is 1 percent, the money multiplier will be equal to
A) 1. B) 10. C) 11. D) 100.
Which of the following statements best describes real per capita GDP in the US between 1929 and 1959?
a. It was a period of consistent increase. b. It was lower at the end of the period than the beginning because of the Great Depression. c. Although it was erratic in the early part of this period during the Great Depression, it increased consistently after World War II. d. It grew the most during World War II.
One way fiscal policy affects aggregate demand is:
A. directly through government spending. B. directly through tariffs. C. directly through taxation. D. All of these are true.
Based on the table showing income inequality in the United States, what happened to the lowest fifth’s share of income between 1935 and 2017?
a. The percentage of income steadily dropped over time.
b. The percentage of income steadily increased over time.
c. The percentage of income dropped but then grew to higher than ever.
d. The percentage of income grew but then dropped to lower than ever.