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) not related to 1/RR. B) smaller than 1/RR.
C) equal to 1/RR. D) larger than 1/RR.
B
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Which of the following statements identifies a difference between correlation and causation?
A) Correlation occurs when one thing directly affects another, whereas causation implies a mutual relationship between two things. B) Causation cannot arise when correlation is present, and correlation cannot arise when causation is present. C) Correlation implies a mutual relationship between two things, whereas causation occurs when one thing directly affects another. D) A causal relationship exists between two variables when they are correlated, but correlation does not necessarily exist if there's a causal relationship between two variables.
Which of the following would be most likely to improve the standard of living of people in less-developed nations?
a. the development of strong labor unions b. an increase in foreign investment c. an increase in the share of the population under fifteen years of age d. higher tariffs and the imposition of other restraints designed to restrict international trade
Suppose that two poker players believe that they are superior players to the rest of the people at their table. Further suppose that the two players make an agreement to concede hands to each other in order to drive the other players from the game first. Economists would model such behavior as
a. monopolistic competition. b. game theory. c. predatory pricing. d. a dominant strategy.
U.S. government debt as a percentage of GDP has been:
A. falling steadily since World War II. B. unchanged since World War II. C. increasing steadily since World War II. D. fluctuating since World War II.