The money-creation multiplier is affected by the
A) public's demand for currency as a proportion of demand deposits.
B) bank reserve-holding ratio as a proportion of demand deposits.
C) rediscount rate applied to loans from the Fed to banks.
D) Both A and B are correct.
D
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When a home builder decides to computerize all of its production schedule, it directly answers the ________ question
A) for whom B) what C) where D) how E) why
The notion that technological change is not random but instead is driven by the pursuit of profits is an essential element of
A) classical growth theory. B) neoclassical growth theory. C) the new growth theory. D) perpetual growth theory.
According to classical macroeconomic theory, changes in the money supply affect
a. unemployment and the price level. b. unemployment but not the price level. c. the price level, but not unemployment. d. neither the price level nor unemployment.
In the situation shown on this graph, the multiplier effect on aggregate demand is ______.
a. half the effect the initial government purchase has on it
b. double the effect the initial government purchase has on it
c. equal to the effect the initial government purchase has on it
d. equal but opposite to the effect the initial government purchase has on it