If a commercial bank holds 25 percent of deposits as reserves, then the value of money multiplier will be equal to 4
a. True
b. False
Indicate whether the statement is true or false
True
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If the economy is producing at point B, the opportunity cost of gaining 12 units of consumer goods is _______ units of capital goods.
Which of the following is NOT a characteristic of rent controls?
A. Excess demand for apartments B. Fewer newly built apartment buildings C. Lower expenditures on maintenance D. Greater availability of apartments
If producer pays entire tax, good is _________________.
Fill in the blank(s) with the appropriate word(s).
During 2003, the Federal Reserve began to openly discuss deflation. Their comments suggested they
A. knew it was something to watch because of the Japanese experience of the 1990s, but did not alter policy significantly to combat it. B. were neutral about whether deflation would be a good thing. C. were enthusiastic about the possibility. D. knew it would be a disaster, so they immediately cut the target federal funds rate by 5 percentage points to avoid the possibility.