If households choose to take some fraction of each check they deposit and hold it as currency, then the simple deposit multiplier ________ the real-world multiplier
A) is equal to B) is greater than
C) bears no relationship to D) is less than
B
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Refer to the production possibilities frontier in the figure above. Production point ________ represents an ________ production point
A) b; unattainable B) c; unattainable C) e; inefficient D) c; inefficient
If a firms cuts inputs in half, and output falls by more than half, then there are
A) increasing returns to scale. B) decreasing returns to scale. C) constant returns to scale. D) decreasing marginal returns.
Which of the following involves either the buyer or the seller of a product having more information about the quality or price of the product than the other party?
a. Asymmetric information b. Imperfect information c. Risk assessment d. Adverse selection
Which of the following actions does not promote capital deepening?
(A) Raising taxes to pay for building roads. (B) A low population growth rate at the same time that capital stock expands. (C) Borrowing money from foreign nations to invest in building infrastructure in this country. (D) Saving less and spending more of one's disposable income.