Modern Keynesians differ from traditional Keynesians because modern Keynesians
A. Believe that failures of the economy are inherent in a capitalist economy.
B. Believe that tax cuts and government spending should be used to increase aggregate demand and output.
C. Favor fixed rules and steady, predictable policies.
D. Believe that monetary policy can be useful in managing the economy.
Answer: D
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An individual deposits $12,000 in a commercial bank. The bank is required to hold 10 percent of all deposits on reserve at the regional Federal Reserve Bank. The deposit increases the loan capacity of the bank by:
A. $11,000 B. $10,800 C. $9,600 D. $6,000
Which of the following is not a feature of the steady state in Solow's exogenous growth model?
A) The capital/output ratio is steady. B) Capital grows continuously. C) Consumption per worker is steady. D) Total saving is steady.
If the price of one good increases, and as a result the demand for another related good falls, the goods are
A) substitutes. B) normal goods. C) complements. D) inferior goods.
In the United States, the pollution prevention hierarchy consists of the following
a. source reduction b. reuse/recycling c. cleaner production d. all of the above e. (a) and (b) only