To reach the maximum money multiplier, it is assumed that
A) there is insufficient loan demand.
B) all loans get redeposited in a checkable account.
C) loans are diverted into circulating currency.
D) commercial banks keep the amount of reserves. equal to total bank deposits.
B
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A temporary increase in the price of oil would
A) increase both short-run and long-run aggregate supply. B) decrease both short-run and long-run aggregate supply. C) increase short-run aggregate supply and decrease long-run aggregate supply. D) decrease short-run aggregate supply and leave long-run aggregate supply unchanged.
The ability to produce a good at a lower opportunity cost than someone else is called
A) competitive production. B) comparative advantage. C) selective advantage. D) absolute advantage.
With increased specialization in the economy, principal-agent problems become
a. more numerous b. less numerous c. more severe, but there are fewer of them d. less severe, but there are more of them e. easier to solve
Refer to the information provided in Figure 34.1 below to answer the question(s) that follow.
Figure 34.1Refer to Figure 34.1. If the economy is open and the government increases spending by 15, the new equilibrium output is
A. 81.25. B. 100. C. 112.50. D. 125.