The money multiplier is potential because
a. the legal reserve requirement is never precisely set
b. banks might not be able to lend out all of their excess reserves
c. banks always lend all of their excess reserves
d. banks are prohibited from lending out all of their excess reserves
e. banks can only lend out an amount equal to their required reserves
B
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C = $750 + 0.75(1 - 0.4)y i = $600 g = $500 nx = -$50
Use the above data to: a. Calculate the equilibrium level of GDP b. Calculate the value of the expenditure multiplier c. Find the change in the initial equilibrium GDP if autonomous investment increases by $75. d. Find the change in the initial equilibrium GDP if autonomous government purchases decreases by $50. e. Find the change in the initial equilibrium GDP if autonomous net exports increase by $10.
Money costs and opportunity costs are concepts that are
a. not related in any meaningful way. b. used by tax accountants. c. related through relative prices of goods and services. d. used by economists to learn the most efficient level of output.
Thomas Robert Malthus said that
A. our population is growing faster than our food supply. B. our food supply is growing faster than our population. C. our food supply and our population are growing at the same rate.
How would the labor demand curve of a large mortgage company be affected by a drop in mortgage interest rates that sparks a rush on home buying?
a. shift to the left b. shift to the right c. shift upward d. shift downward