The higher the reserve ratio, the:
A. greater the money multiplier.
B. greater the level of required reserves.
C. smaller the money multiplier.
D. more money will be created.
Answer: C
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In the loanable funds market, if the real interest rate is higher than the equilibrium real interest rate,
A) the demand for loanable funds curve shifts rightward to restore the equilibrium. B) there is a surplus of investment. C) there is a shortage of loanable funds. D) the demand for loanable funds curve shifts leftward to restore the equilibrium. E) there is a surplus of loanable funds.
Macroeconomics deals with
A) aggregates within the economy. B) specific sectors within the economy. C) the retail industry only. D) decisions made by firms.
According to the World Bank, developing countries greatly outnumber industrial countries
a. True b. False Indicate whether the statement is true or false
"My opponent in this election says she wants a balanced federal budget, but won't say how it would be achieved." This candidate is trying to
A) challenge his or her opponent's commitment to balancing the budget. B) get his or her opponent to say something that will allow a label of "left-wing" or "right-wing" to be attached on her. C) accuse the opponent of going exclusively after the median voter, who is never interested in ends, only means. D) accuse the opponent of going after the votes of the rationally ignorant.