When excess reserves increase, the deposit multiplier is
A. increased.
B. decreased.
C. staying the same.
D. None of the above is correct.
Answer: B
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If the basket of goods and services used to calculate the CPI cost $200 in the reference base period and $450 in a later year, the CPI for the latter year equals
A) 200. B) 225. C) 325. D) 450.
Refer to Figure 17-1. What should the Federal Reserve do if it wants to move from point A to point B in the short-run Phillips curve depicted in the figure above?
A) lower taxes B) buy treasury bills C) lower the discount rate D) increase the money supply E) sell treasury bills
Joe and Rita each have some cookies and milk. Joe is willing to trade 2 cookies for an additional ounce of milk. Rita is willing to trade 4 cookies for an additional ounce of milk
If trading is possible, which of the following is most likely to occur? A) Joe will give some milk to Rita in exchange for cookies. B) Rita will give some milk to Joe in exchange for cookies. C) No trade will take place since they both prefer to have more milk and fewer cookies. D) There is not enough information to make any predictions.
The OPEC crisis caused the aggregate demand curve to shift to the left
Indicate whether the statement is true or false