If the money multiplier is approximated to be 10, it means:
A. banks create 10 dollars in deposits from each original deposit of a dollar.
B. banks create approximately 10 times the amount of cash in the economy.
C. the economy overall has 10 times the amount of deposits as existing cash.
D. All of these are true.
D. All of these are true.
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Deflation is to the price level as disinflation is to ______.
a. inflation b. the inflation rate c. relative price d. a price index
Describe the advantages that a negative income tax has over other programs that have the same purpose.
What will be an ideal response?
As it relates to the R&D decision, the interest-rate cost-of-funds curve:
A. usually slopes downward. B. is the marginal cost element in the MB = MC decision framework. C. indicates a constant rate of return, r. D. reflects the interest rate on bank loans but not the implicit interest rate on the use of retained earnings.
The possibility that the economy may benefit from having market power, rather than being very competitive, is closely identified with which famous economist?
A) Arnold Harberger B) Joseph Schumpeter C) Sergey Brin D) Donald Turner