The Scarcity Principle applies to:
A. consumers primarily.
B. firms primarily.
C. everyone.
D. poor people primarily.
Answer: C
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Assuming all excess reserves are loaned out, if the reserve ratio is 3.33 percent, the money multiplier will be equal to
A) 0.67. B) 3.33. C) 6.67. D) 30.
Who receives the most of what is produced in a market economy?
A) everyone receives an equal amount B) people who earn the highest incomes C) lawmakers and other politically favored groups D) those who are willing and able to buy them
Suppose there is a 5 percent increase in nominal demand in every industry in an economy. Factors that keep the price level from also rising by 5 percent are called
A) real rigidities. B) nominal rigidities. C) macroeconomic externalities. D) indexations.
The Confederacy's primary mechanism for generating revenue during the Civil War was to:
a. Raise taxes. b. Increase trade and gain more money from exports. c. Borrow more money. d. Print more money.