If the Federal Reserve reduced its reserve requirement from 6.5 percent to 5 percent, and banks held no excess reserves, this policy would:
A. increase both the money multiplier and the money supply.
B. increase the money multiplier but decrease the money supply.
C. decrease both the money multiplier and the money supply.
D. decrease the money multiplier but increase the money supply.
Answer: A
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In the 2008-09 recession, the percentage of part-time workers due to economic reasons
A) rose to almost 18 percent. B) did not include teenagers. C) equalled the unemployment rate for those who are part-time workers due to non-economic reasons. D) decreased slightly over the period. E) doubled from 3 percent to 6 percent.
Full employment means
A) zero unemployment. B) only cyclical unemployment exists. C) only frictional and structural unemployment exists. D) None of the above answers are correct.
The graph shown demonstrates a tax on sellers. What is the amount of tax revenue being generated from the tax?
A. $150
B. $80
C. $310
D. $135
In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices. B. lower prices. C. lower output. D. None of these is true.