Given the reserve-holding ratio e and the fraction of deposits held as cash c, the money multiplier becomes
A) ec/(e - c).
B) (1 + c)/(e + c).
C) (1 - c)/ec.
D) 1 - e - c.
E) ec - (1/c).
B
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What is the slope of the consumption schedule or consumption line for a given economy?
A. APS B. 1 ? MPC C. 1 ? MPS D. APC
Refer to Table 8-18. What is nominal GDP in 2016 when 2011 is the base year?
A) $28,885 B) $11,790 C) $11,200 D) $10,275
From one year to the next, a country's output rose from 4000 to 4500, its capital stock rose from 10,000 to 12,000, and its labor force declined from 2000 to 1750. Suppose aK = 0.3 and aN= 0.7
(a) How much did capital contribute to economic growth over the year? (b) How much did labor contribute to economic growth over the year? (c) How much did productivity contribute to economic growth over the year?
If two nations both peg to a center nation, and one devalues its exchange rate against the other partner (noncooperatively) and to the center as a result of a demand shock, what is the effect?
A) The center nation will require that the two line up their rates. B) The devaluing nation will see an increase in demand while the other partner sees a decrease (thus sharing the effect of the demand shock). C) The devaluing nation will devalue more steeply and will see a larger increase in demand while its partner will suffer more (thus favoring the devaluing nation). D) Both nations will suffer more because the center nation will match the devaluation, thus negating the effect.