At the beginning of a recession, the expenditure multiplier
A) offsets the initial cut in autonomous expenditure and slows the recession.
B) has no effect on the recession.
C) offsets the initial cut in autonomous expenditure and reverses the recession.
D) reinforces the initial cut in autonomous expenditure and reverses the recession.
E) reinforces the initial cut in autonomous expenditure and adds force to the recession.
E
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An increase in the amount of currency held by the public will raise the value of the deposit expansion multiplier
a. True b. False Indicate whether the statement is true or false
The main purpose of the Fed is to
a. serve as the bankers' bank for member banks. b. regulate interest rates. c. print Federal Reserve Notes. d. regulate financial institutions. e. maintain the proper functioning of our money system.
The downward slope of the production possibilities curve illustrates the:
A. Cost-Benefit Principle. B. Incentive Principle. C. Scarcity Principle. D. Principle of Comparative Advantage.
The Federal Reserve System consists of ________
A) eleven district banks and a board of governors B) ten district banks and the FOMC C) eleven district banks D) twelve district banks and a board of governors E) none of the above