The extent of the multiplier effect visible within a short time will be ____ the total effect indicated by the multiplier formula
a. significantly higher than
b. equal to
c. less than
d. slightly higher than
c
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The income earned by the people who sell the services of the factor of production ________ is called ________
A) capital; rent B) entrepreneurship; wages C) land; profit D) entrepreneurship; profit
If a fear of increased bankruptcies of firms causes banks to increase their reserve to deposit ratio, then
a. the money supply and money multiplier will rise. b. the monetary base and the money multiplier will fall. c. there will be no change in the money multiplier, but the money supply will fall. d. the money multiplier and the money supply will fall.
Relative to private firms, we should expect public bureaus to be
a. smaller b. more cost-efficient c. less responsive to consumer demand d. more concerned with adopting new technologies e. more in tune with consumer desires
Suppose a consumer spends his income on CDs and DVDs. If his income decreases, the budget constraint for CDs and DVDs will
a. shift outward, parallel to the original budget constraint. b. shift inward, parallel to the original budget constraint. c. rotate outward along the CD axis because he can afford more CDs. d. rotate outward along the DVD axis because he can afford more DVDs.