The larger is the reserve ratio, the:
A. smaller is the money multiplier, and the less money will be created in the economy.
B. larger is the money multiplier, and the more money will be created in the economy.
C. larger is the money multiplier, and the less money will be created in the economy.
D. smaller is the money multiplier, and the more money will be created in the economy.
Answer: A
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If aggregate planned expenditure exceeds real GDP, then
A) unplanned inventory changes are positive. B) real GDP will decrease. C) aggregate planned expenditure must decrease to restore the equilibrium. D) planned inventory changes must be negative. E) unplanned inventory changes are negative.
Pick the producer who would come closest to operating in a perfectly competitive environment
A) Grim, the mortician B) Green, the barley farmer C) Gristle, the butcher D) Grippe, the doctor
If the Federal Reserve raises interest rates in an autonomous tightening ________
A) the MP curve shifts up, there is an upward movement along the IS curve, and the AD curve shifts to the left to a lower level of equilibrium output B) the MP curve shifts down, there is a downward movement along the IS curve and the AD curve shifts to the right to a higher level of equilibrium output C) the MP curve shifts up, there is a downward movement along the IS curve and the AD curve shifts to the right to a lower level of equilibrium output D) the MP curve shifts down, there is an upward movement along the IS curve and the AD curve shifts to the left to a higher level of equilibrium output E) none of the above
Monopoly firms may lead to higher costs than perfectly competitive firms
a. True b. False Indicate whether the statement is true or false