An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock.
B. negative supply side shock.
C. positive demand side shock.
D. positive supply side shock.
Answer: B
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A bank's required reserves are calculated by multiplying ________
A) its deposits by the required reserve ratio B) the sum of its deposits and cash in its vault by the required reserve ratio C) cash in its vault by the required reserve ratio D) the gold in its vault by the required reserve ratio
Soo Jin shares a one-bedroom apartment with her classmate. Her share of the rent is $700 per month. She is considering moving to a studio apartment which she will not have to share with anyone. The studio apartment rents for $950 per month
Recently, you ran into Soo Jin on campus and she tells you that she has moved into the studio apartment. Soo Jin is as rational as any other person. As an economics student, you rightly conclude that A) Soo Jin figures that the additional benefit of having her own place (as opposed to sharing) is at least $250. B) Soo Jin did not have a choice; her roommate was a slob. C) Soo Jin figures that the additional benefit of having her own place (as opposed to sharing) is at least $950. D) the cost of having one's own space outweighs the benefits.
If your bank receives a checkable deposit of $20,000 cash, and the banking system makes loans totaling $60,000 . the maximum possible, then the money multiplier must be:
a. 2. b. 2.5. c. 3. d. 3.5. e. 4.
The dual mandate does NOT include which of the following?
A. maximum employment B. stable prices C. the value of the dollar