The money multiplier is
A) simply one over the required reserve percentage.
B) the relationship between bonds and money.
C) the way to calculate the impact of open market operations on foreign exchange reserves.
D) equal to total reserves divided by total deposits.
A
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What would happen in the market for laser eye surgery if insurance companies started to cover a portion of the price of voluntary procedures?
A) Demand and supply will both increase. B) Demand will increase, but this will not shift the supply curve. C) Supply will increase, but this will not shift the demand curve. D) Demand will increase and supply will decrease.
The income approach to calculating GDP:
A. is more accurate than using the expenditure approach. B. is less accurate than using the expenditure approach. C. will generate the same answer as using the expenditure approach. D. is simpler to calculate than the expenditure approach.
The market-demand curve for a product in a perfectly competitive market:
a. is horizontal. b. is downward sloping. c. is vertical. d. has elasticity equal to 1. e. is positively sloped.
During the financial crisis of 2007-2009, the proper policy response was
a. contractionary monetary and fiscal policy. b. contractionary monetary and expansionary fiscal policy. c. expansionary monetary and fiscal policy. d. expansionary monetary and contractionary fiscal policy.