Over time, the money multiplier:
A. was relatively stable until 2008, when it dropped dramatically.
B. was relatively stable until 2008, when it rose dramatically.
C. has historically followed the business cycle.
D. runs counter cyclic to the business cycle.
A. was relatively stable until 2008, when it dropped dramatically.
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Which of the following is most likely to reduce an individual's future spending?
A) Withdrawing money today B) Lending money today C) Paying back a loan in the future D) Withdrawing money in the future
Economic theory indicates that the amount consumed of a natural resource depends on
a. the price of the resource. b. consumer income. c. the price of substitute resources. d. all of the above.
Capital flight raises both a country's exchange rate and its interest rate
a. True b. False Indicate whether the statement is true or false
If Mr. Garrison is paid an interest rate of 4% on his savings, but the inflation rate is 7%, the real interest rate Mr. Garrison earns is
A. 28%. B. 4%. C. -3%. D. -7%.