If crowding out exists, contractionary fiscal policy will cause the aggregate demand curve to shift in by more than indicated by the government spending multiplier
a. True
b. False
Indicate whether the statement is true or false
False
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Thomas Schelling's most notable work dealt with ________, which lead to his advising role for the film Dr. Strangelove
A) neighborhood segregation B) nuclear annihilation C) medical malpractice D) psychotherapy
Refer to Table 19-20. Given the following information, calculate the rate of increase in the price level from 2015 to 2016
A) 8.6% B) 7.9% C) -7.9% D) -8.6%
In one sense ________ appears surprising since it means that the bank is not ________ its portfolio of loans and thus is exposing itself to more risk
A) specialization in lending; diversifying B) specialization in lending; rationing C) credit rationing; diversifying D) screening; rationing
Answer the next question on the basis of the following table for a commercial bank or thrift:(1)(2)(3)Legal Reserve Ratio (%)Checkable DepositsActual Reserves10$40,000$10,0002040,00010,0002540,00010,0003040,00010,000Refer to the above table. If the legal reserve ratio falls from 25 percent to 10 percent, excess reserves of this single bank will:
A. fall by $6,000 and the monetary multiplier will decline from 30 to 10. B. rise by $6,000 and the monetary multiplier will increase from 4 to 10. C. rise by $60,000 and the monetary multiplier will increase from 4 to 10. D. fall by $2,000 and the monetary multiplier will decline from 10 to 4.