If the required reserve ratio is decreased from .2 to .1 the demand deposit expansion multiplier
A) increases from 5 to 10.
B) increases from 4 to 4.5.
C) decreases from 5 to 2.5.
D) decreases from 2 to 1.
D
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
Compared to Chile (since 1973), Argentine policy has been
a. more favorable to private enterprise b. more monetarist c. more constant d. more successful in macroeconomic terms e. none of the above
Suppose a graph is drawn to show a consumer's preferences for football tickets and basketball tickets. The quantity of football tickets is measured on the horizontal axis
If the price-consumption curve is horizontal when the price of football tickets changes, then A) football tickets are an inferior good. B) the demand for football tickets is perfectly elastic. C) the demand for football tickets is unit elastic. D) the demand curve for football tickets will be horizontal.
The supply curve for housing in the very short run is likely to be
A. perfectly elastic. B. unit-elastic elastic. C. very elastic. D. very inelastic.