Based on the information in the table, if the public had not decided to hold more currency in 1932, but the actions of the Federal Reserve and the banks remained the same, the money supply at the end of 1932 would have been: Currency held by public (in billions)Reserve-deposit ratioBank reserves (in billions)Money supply (in billions)December 1931$4.590.095$3.11$37.3December 1932$4.820.109$3.18$34.0
A. $33.8 billion
B. $36.1 billion
C. $34.2 billion
D. $35.9 billion
Answer: D
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
If production technological interdependency exists, the ________ integration of the successive production stages ________ production costs.
A) vertical; increases B) vertical; can reduce C) horizontal; can reduce D) horizontal; doubles
According to the graph shown, if the market goes from equilibrium to having its price set at $10:
A. market transactions will decrease by 7.
B. market transactions will decrease by 3.
C. market transactions will decrease by 10.
D. market transactions will not change, only price has changed.
Suppose there was a debate regarding student financial aid budgets and the Democrat was arguing for a budget increase from $40 billion to $50 billion and the Republican was arguing for the budget to increase to only $41 billion. Further, suppose college costs were project to rise 10%, even with the same number of students. The Democrat accuses the Republican of proposing a cut to education while, the Republican insists his plan increases education spending. What is going on here?
A. The Republican is cutting education only if you use baseline budgeting. B. Both are proposing cuts. They are both lying, regardless of budgeting technique. C. The Republican is cutting education only if you use current services budgeting. D. Both are proposing increases. The Democrat is lying, regardless of budgeting technique.