In a recession Keynesians emphasize the need to ________ government spending or ________ taxes, which will cause a multiplier reaction.
A. decrease; decrease
B. increase; increase
C. increase; decrease
D. decrease; increase
Answer: C
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National income is defined as
A) gross domestic product less the consumption of fixed capital. B) gross national product plus transfer payments. C) gross domestic product less retained earnings plus transfer payments. D) gross national product less retained earnings plus transfer payments.
What are the advantages of bank deposits compared to other types of assets?
What will be an ideal response?
An open market purchase immediately impacts the banking system balance sheet by
a. increasing required reserves. b. increasing deposits. c. increasing the money multiplier. d. increasing excess reserves. e. none of the above.
Which of the following has the highest price elasticity of demand?
A. Medical care B. Restaurant meals C. Bread D. Household electricity