If, during a deposit expansion, not all money gets redeposited into the banking system and some leaks out as currency, then the real world multiplier is
A) smaller than 1/RR.
B) larger than 1/RR.
C) equal to 1/RR.
D) not related to 1/RR.
Answer: A
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The price elasticity of supply is
A) negative. B) zero. C) positive. D) unknown, depending on other factors.
A choice architect is someone who:
A. determines which choices are available to builders in a specific area. B. designs areas that have a lot of choices in determining how the space is used. C. is in a position to shape the decision-making environment. D. determines how people should make decisions inside of a specific environment.
Suppose that labor is measured on the horizontal axis and capital is measured on the vertical axis. At an interior solution:
A. MRTSLK = PL/PK. B. MRTSLK = - PL/PK. C. MRSTLK = PK/PL. D. MRTALK = - PK/PL.
A country producing a combination of 5 units of guns and 6 units of butter would be _________________ (outside/on/inside) the production possibilities curve.
