If the reserve requirement for a bank is $200,000 for a deposit of $1 million, then the money multiplier is:
a. 1.25
b. 2.0
c. 5
d. 20
c
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Suppose the U.S. Congress is successful in enacting tariffs large enough to eliminate the current account deficit. What would happen to the level of domestic investment?
A) It would not change. B) It would fall to a level equal to national saving. C) It would rise and exceed national saving. D) It would rise to a level equal to net foreign investment.
An individual who works for 49 quarters in a covered job is eligible for Social Security benefits
a. True b. False
If the U.S. government were to relax its restrictions on offshore oil well drilling and open drilling in Alaskan national parks, the result to aggregate supply would be to
A) cause a shift in the SRAS to the left. B) cause a shift in the LRAS to the left. C) cause no long-term shifts in AS. D) cause a shift in both LRAS and SRAS to the right.
If expansionary fiscal policies in theUS lead to increased budget deficits what will happen to real interest rates in the US and the value of the dollar?
a. increase; increase b. increase; decrease c. no change; decrease d. decrease; increase e. decrease; decrease