The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment.
B. exogenous spending.
C. recessionary gaps.
D. expansionary gaps.
Answer: D
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An increase in the reserve requirement ________.
A. increases the money supply by increasing excess reserves and increasing the monetary multiplier B. decreases the money supply by increasing excess reserves and decreasing the monetary multiplier C. decreases the money supply by decreasing excess reserves and decreasing the monetary multiplier D. increases the money supply by decreasing excess reserves and decreasing the monetary multiplier
Which of the following is included in M1?
A. Savings accounts B. Money market deposit accounts C. Money market mutual funds D. Certificates of deposit E. None of the above is included.
What are internal labor markets and what is an important characteristic of these markets?
What will be an ideal response?
Exchanging dollars for euros to pay a computer manufacturer in Belgium would occur
A) in the foreign exchange market. B) at the Federal Reserve. C) at the European Central Bank. D) in the letter of credit market.