Refer to Table 9-5. The required reserve ratio is 10%. What is the value of the deposit multiplier?
A) 1
B) 2.5
C) 7
D) 10
Ans: D) 10
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Social Security is an earmarked tax
a. True b. False
If it costs the DuPont Chemical Company more to make the chemical flaxinate in the United States than it does to make it in Formosa, the Formosans must have:
a. lower demand for flaxinate. b. tariffs on flaxinate. c. inefficient markets. d. a more favorable political environment. e. an absolute advantage in flaxinate production.
A reduction in business expectations, combined with the imposition of new tariffs by major trading partners, would have what effect on aggregate demand? a. AD would increase
b. AD would decrease. c. AD would stay the same. d. AD could either increase or decrease, depending on which change was of a greater magnitude.
If demand for a good is elastic, then the price elasticity will be:
A. equal to one. B. equal to zero. C. greater than one. D. less than one.