One reason the oversimplified multiplier is incorrect is that inflation
A. increases the multiplier by increasing investment spending.
B. increases the multiplier by increasing consumer spending.
C. decreases the multiplier by increasing net exports.
D. decreases the multiplier by decreasing consumer spending.
Answer: D
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Explain how the following will affect the supply curve of coffee
a) A fall in the wages paid to coffee workers b) An increase in the availability of high-yielding coffee plants c) A decrease in the quantity of land under coffee cultivation What will be an ideal response?
By acting as a lender of last resort during a bank panic, the Federal Reserve enables banks to
A) encourage the public to borrow directly from the Fed to alleviate the panic. B) call in their loans from their customers to restore faith in the banking system. C) borrow increasingly large amounts from the Fed, which will reduce the public's faith in the banking system. D) satisfy customers' desires to withdraw money and eventually restore the public's faith in the banking system.
In the United States, consumers usually pay less than the true cost of medical treatment because of
A) adverse selection. B) rising insurance premiums. C) rising insurance deductibles. D) third-party payers.
Which of the following statements is correct?
a. from the bank's point of view, loans to customers are assets of the bank b. from the bank's point of view, loans to customers are liabilities of the bank c. from the customer's point of view, loans to customers are assets of the customer d. from the customer's point of view, loans to customers are liabilities of the customer e. a and b only f. a and d only Indicate whether the statement is true or false