If the excess reserves-to-deposit ratio decreases and the monetary base is unchanged, the value of the money multiplier will ________ and the value of the money supply will ________
A) decline; decline
B) decline; increase
C) increase; decline
D) increase; increase
D
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If a household's disposable income increases from $50,000 to $100,000 and its consumption increases from $40,000 to $80,000 . the MPS must be _____
a. 0.4 b. 0.8 c. 0.7 d. 0.2 e. 0.5
If the world supply curve is SW0,
A. domestic quantity supplied is unrelated to domestic quantity demanded. B. domestic quantity supplied exceeds domestic quantity demanded. C. domestic quantity supplied equals domestic quantity demanded. D. domestic quantity supplied is less than domestic quantity demanded.
The demand for good X has been estimated by Qxd = 12 ? 3Px + 4Py. Suppose that good X sells at $2 per unit and good Y sells for $1 per unit. Calculate the own price elasticity.
A. ?0.6 B. ?0.2 C. ?0.3 D. ?0.5
Which of the following best describes the idea of a political business cycle?
A. Politicians will use fiscal policy to cause output, real incomes, and employment to be rising prior to elections. B. Fiscal policy will result in alternating budget deficits and surpluses. C. Despite good intentions, various timing lags will cause fiscal policy to reinforce the business cycle. D. Politicians are more willing to cut taxes and increase government spending than they are to do the reverse.