Which factors led to the large rise in the government's budget deficit in the early 1980s?
a. The Clinton Administration's health care program
b. A cutback in military spending
c. An income tax increase
d. A build up in military spending
e. A large and unprecedented economic expansion
D
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Suppose that the reserve ratio is 6% and applies only to checkable deposits. A bank has noncheckable time deposits of $300 million, checkable deposits of $100 million, and reserves of $8 million. What are the excess reserves of this bank?
A. $2 million B. $6 million C. $5.6 million D. $2.4 million
To face scarcity means individuals
A) choose. B) economize. C) sacrifice some plans over others. D) all of the above.
The income effect of a wage increase is observed when
A) the higher wage income causes workers to take more leisure and work less. B) the higher wage income causes workers to take less leisure and work more. C) leisure's higher opportunity cost causes workers to take less leisure and work more. D) leisure's higher opportunity cost causes workers to take more leisure and work less.
The MP curve may be used to represent how ________
A) movements of the inflation rate are determined by the real interest rate B) monetary policy responds to changes in the real interest rate C) movements of the real interest rate are related to the inflation rate D) all of the above E) none of the above