Referring to Table 12.2, if the nominal interest rate is 3.5 percent and there is no inflation, which investments will be undertaken?
A) B, D, E B) D, E C) B, C, D, E D) C, E
C
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A rightward shift in the demand curve for a product will ordinarily result from
a. a decrease in the advertising budget. b. a decrease in the price of a competing product. c. an increase in consumer income. d. an increase in the price of a complementary good.
To put government debt into perspective, it should be:
a. Compared to a nation's balance on goods and services. b. Adjusted for inflation to find the real debt. c. Adjusted by any increase in wage rates caused labor union activity. d. All the above. e. None of the above.
Which of the following is not a reason for the downward slope of the aggregate demand curve?
A. Real balances effect B. Interest-rate effect C. Net exports effect D. Government spending effect
The required reserve ratio is 10 percent, but banks actually keep 20 percent on reserve. The actual money multiplier will be
A. 10 B. 9 C. 5 D. 2 E. 1