To overcome persistent inflation, what might policy makers reduce to lower demand in an economy?
a. payroll taxes
b. government spending
c. interest rates
d. customs duties
b. government spending
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Assuming that banks have loaned all excess reserves, then an increase in checking account balances brought about by an increase in deposits is equal to
A) (the initial deposit) × (the reserve ratio). B) (total reserves) × ( the reserve ratio). C) (the initial deposit) × (1 / reserve ratio). D) (total reserves) × (1 / reserve ratio).
In the United States, a patent gives the patent holder exclusive rights to an invention for typically how many years?
A) 20 B) 5 C) lifetime of patent holder D) 15
The financial crisis and recession which began in 2007:
A. impacted only high-income countries. B. did not impact the United States. C. impacted many countries in the world. D. impacted only low-income countries.
When the average propensity to save (APS) is 0.35, then this means
A. people are spending 35 percent of their disposable income and investing the remaining 65 percent. B. people are spending 35 percent of their disposable income. C. people are spending 65 percent of their disposable income. D. people are saving $0.65 of the last dollar earned.