Assume the deposit expansion multiplier is 3.0. If the Treasury borrows $5 billion from the Non-bank public and spends it on the public, bank reserves will
A) rise by $5 billion.
B) fall by $5 billion.
C) rise by $15 billion.
D) not change.
D
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A teenager plays his radio loudly at the beach. What can we conclude?
A) He creates a negative externality if it unintentionally annoys or upsets others. B) He creates a positive externality if it unintentionally benefits others who enjoy the same music. C) He creates no externality, if others remain unaffected by the music. D) All of the above.
Labor productivity, measuring the output per worker
a. increases with increases in technology b. decreases with increases in technology c. increases with increases in capital stock d. is the same as the capital labor ratio e. is the same as the capital output ratio
If you take investment by U.S. residents in other countries and you subtract investment by foreign residents in the U.S., you will find
a. gross foreign investment b. net foreign investment d. gross domestic product e. negative net foreign investment
The duration of an expansion is measured from:
A. trough to trough. B. peak to peak. C. peak to trough. D. trough to peak.