If the required reserve ratio is a uniform 25 percent on all deposits, the money multiplier will be:
A. 4.00.
B. 2.50.
C. 0.40.
D. 0.25.
Answer: A
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Which of the following best illustrates the difference between GDP and GNP?
a. GDP measures the goods consumed by the citizens of a country, while GNP measures output exported to other countries. b. GDP measures the output produced by the citizens within a country, while GNP measures output produced by noncitizens within a country. c. GDP measures the output produced by the citizens of a country, while GNP measures output produced within the borders of a country. d. GDP measures the output produced within the borders of a country, while GNP measures output produced by the citizens of a country.
Who of the following would be included in the Bureau of Labor Statistics' "unemployed" category?
a. Miguel, who is on temporary layoff b. Reta, who worked only 15 hours last week c. Marisa, who neither has a job nor is looking for one d. None of the above is correct.
The demand curve for product X is given by QX = 50 - 2PX. How much consumer surplus do consumers receive when PX = $5?
A. $100. B. $200. C. $400. D. $500.
Which of the following is false?
A. The classical economists believed that the economy was basically stable. B. Keynes believed that full employment was a "rare occurrence". C. Keynes argued that the interest rate was the most important factor in determining the level of investment demand in an economy. D. The classical economists used the laws of supply and demand to prove the validity of Say's law.