The demand deposit multiplier is likely to be smaller than 1/RRR if
a. the public will not want to change its holdings of currency
b. the public holds no currency
c. banks want to hold excess reserves
d. want to hold no excess reserves
e. banks increase the number of loans they offer to make a larger profit
C
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Answer the next question on the basis of the following information about a hypothetical economy.Full-time employed = 80 Part-time employed = 25 Unemployed = 15 Discouraged workers = 5 Members of underground economy = 6 Consumer price index = 110 The unemployment rate is
A. 12.5%. B. 25%. C. 16.7%. D. 18.8%.
Supporters of consumer-driven health care assert that:
a. competitive markets are the most efficient way to allocate limited health care resources b. govenment agencies staffed by consumers should determine health care prices c. both of the above d. neither of the above
What variable adjusts to balance demand and supply in the market for loanable funds?
Interdependence is the key characteristic of
A. monopolistic competition. B. monopoly. C. oligopoly. D. perfect competition.