The formula for the multiplier is


Economics

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A country will realize no gains from trade if

A) pre-trade and free-trade relative prices are identical. B) all countries employ the same technology. C) it does not have an absolute advantage in at least one good. D) its wage exceeds the world average. E) pre-trade and free-trade relative prices are not identical.

Economics

The income and substitution effects move in ________ for lenders and in ________ for borrowers

A) the same direction; the same direction B) the same direction; opposite directions C) opposite directions; the same direction D) opposite directions; opposite directions

Economics

Which of the following is the result of a banking panic?

a. A decrease in the demand deposit multiplier b. An increase in the money supply c. An increase in bank reserves d. A decrease in the money supply e. An increase in the demand deposit multiplier

Economics

The primary objective of the ECB is to:

A) promote economic growth. B) promote full employment. C) foster an equitable distribution of income. D) maintain price stability.

Economics