When an economy is operating at full employment, _____
a. structural unemployment does not exist
b. cyclical unemployment does not exist
c. the unemployment rate is zero
d. seasonal unemployment does not exist
e. the number of discouraged workers is zero
b
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The Malthusian model emphasizes fixity in which of the following factors of production?
A) labor B) land C) energy D) none of the above
If the Federal Reserve purchases $1 million in government securities in the open market, with a 25 percent required reserve ratio on deposits, the maximum increase in deposits would be
a. $4 million. b. $10 million. c. $25 million. d. -$4 million. e. none of the above
What is the money multiplier? What are the factors that can affect the size of the money multiplier?
Which of the following could explain a decrease in the interest rate and an increase in the equilibrium quantity of investment?
a. the supply of loanable funds shifted right. b. the supply of loanable funds shifted left. c. the demand for loanable funds shifted right. d. the demand for loanable funds shifted left.