Governments can affect the level of aggregate demand in a direct way by changing
a. government spending.
b. exports.
c. taxes.
d. transfer payments.
a
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The balanced-budget multiplier is equal to the
A) the autonomous spending multiplier. B) government spending multiplier plus the tax multiplier. C) simple multiplier minus the tax multiplier. D) government spending multiplier plus the simple multiplier.
Primary dealers are those
A) permitted to trade directly with the Fed. B) who work under the account manager at the Federal Reserve Bank of New York. C) who specialize in selling bonds to small private investors. D) responsible for assuring that interest rates do not decline unless the FOMC has given specific instructions that they decline.
The political process can impede redistribution goals because _____
a. there are more stingy voters than generous voters b. there are more middle class voters than poor voters c. there are more dumb voters than smart voters d. there are more middle class politicians than poor politicians
Suppose the required reserve ratio was 10% and then it increased to 20%. This would
a) result in a drop in the money multiplier from 10 to 5. b) increase the amount of excess reserves available. c) result in an increase in the money multiplier from 5 to 10. d) have no impact on the money multiplier.