When current tax revenues exceed current government expenditures and the economy is achieving full employment:
A. the cyclically adjusted budget has neither a deficit nor a surplus.
B. the cyclically adjusted budget may have either a deficit or a surplus.
C. the cyclically adjusted budget has a surplus.
D. the government is engaging in an expansionary fiscal policy.
C. the cyclically adjusted budget has a surplus.
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About _____ of the world's population live in LDCs.
Fill in the blank(s) with the appropriate word(s).
If the required reserve ratio is one-third, currency in circulation is $300 billion, checkable deposits are $900 billion, and there is no excess reserve, then the monetary base is
A) $300 billion. B) $600 billion. C) $333 billion. D) $667 billion.
If a single banks faces a required reserve ratio of 20 percent, has total reserves of $500,000 . and checkable deposit liabilities of $400,000 . what is the maximum amount of money this bank could create (add to the money supply)?
a. $420,000 b. $100,000. c. $80,000 d. $2,100,000.
Suppose we were analyzing the pound per Swiss franc foreign exchange market. If Switzerland's central bank intervenes to raise the value of the Swiss franc, then:
a. The demand for Swiss francs in the foreign exchange market rises, and Switzerland's monetary base falls. b. The supply of Swiss francs in the foreign exchange market rises, and Switzerland's monetary base rises. c. The supply of Swiss francs in the foreign exchange market rises, and Switzerland's monetary base falls. d. The demand for Swiss francs in the foreign exchange market rises, and Switzerland's monetary base rises. e. The demand for Swiss francs in the foreign exchange market rises, and Switzerland's monetary base remains unchanged.