Planned aggregate expenditure is equal to
A) consumption spending plus planned investment spending.
B) consumption spending plus planned investment spending plus government purchases plus net exports.
C) planned investment spending only.
D) consumption spending only.
B
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The multiple by which the commercial banking system can expand the supply of money is equal to the
A. reciprocal of the federal funds rate. B. ratio of actual reserves to required reserves. C. reciprocal of the reserve ratio. D. ratio of required reserves to actual reserves.
Return on investment is calculated as:
a) the amount invested divided by earnings. b) the amount invested divided by the interest rate. c) earnings divided by the amount invested. d) earnings divided by the interest rate.
John raises bees to pollinate his orchard. A couple of bees which escaped ended up pollinating his neighbor's orchard, so
A) John's neighbor has received an internal cost of John's bee-keeping. B) John's neighbor has received an external cost of John's bee-keeping. C) John's neighbor has received an external benefit of John's bee-keeping. D) None of the above is correct.
Government officials wanting to defend a fixed exchange rate may not have sufficient reserves of foreign currency to keep the price fixed indefinitely.
Answer the following statement true (T) or false (F)