As the multiplier process works through time, the size of the multiplier effect becomes

A. larger.
B. smaller.
C. constant.
D. explosive.


Answer: B

Economics

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An efficiency wage is defined as

A. any wage scheme that is accepted by the union. B. a wage above the competitive wage that elicits greater effort on the part of workers. C. any wage scheme that pays all workers the same wage. D. a wage below the competitive wage that elicits greater effort on the part of the workers. E. any wage scheme that pays different workers different wages.

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In a business cycle, the high point of economic activity is called

A. a peak B. a trough C. a zenith D. a high

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If a country's international reserves are increasing, then its exchange rate is ________ and there is a balance-of-payments ________.

A. undervalued; surplus B. overvalued; surplus C. overvalued; deficit D. undervalued; deficit

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