The actual money multiplier is smaller than the simple money multiplier because:
a. the actual multiplier affects M2 rather than M1
b. cash withdrawals reduce the amount banks can lend out.
c. the actual multiplier affects the amount of excess reserves each bank holds.
d. the size of the simple multiplier depends on the volume of deposits unlike the actual multiplier.
e. the actual multiplier uses a different measure of reserve requirements.
b
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At a fast food restaurant, a large drink is twice as big as a small drink, but the restaurant charges 79¢ for the small drink and only 99¢ for the large drink. This situation is probably not a case of price discrimination because
a. the restaurant cannot easily prevent resale. b. people who buy large drinks order more food than people who buy small drinks. c. the cost of serving a large drink is not twice the cost of serving a small drink. d. the fast food restaurant has no monopoly power.
Starting from long-run equilibrium, the long-run impact(s) of an increase in autonomous consumption, compared to the original equilibrium, is:
A. higher inflation and the same output. B. lower inflation and the same output. C. lower inflation and lower output. D. higher inflation and higher output.
As the general population has aged, there has been an increase in the number of nursing homes, community health facilities along with the development of home care facilities. All of these factors have produced an increase in the demand for nurses. Simultaneously, improved job opportunities for women other fields have reduced the supply of nurses. Despite these factors, hospitals, the major employers of nurses, have resisted wage increases. The resulting situation can be described as
A. a cost disease in the service sector. B. a shortage of nurses. C. the problem of auxiliary restrictions. D. a wage floor problem.
From 2004 to 2006, the U.S. budget was ________, private saving was ________ domestic investment, and foreign borrowing was ________
A) in deficit, less than, needed to finance deficit B) balanced, roughly equal to, not needed to finance deficit C) balanced, less than, substantial. D) surplus, greater than, negligible