The multiple by which total deposits can increase for every dollar increase in reserves is the
A. deposit insurance limit.
B. required reserve ratio.
C. money multiplier.
D. bank's line of credit.
Answer: C
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In bargaining between a bureau and the legislature over a budget, the legislature decides to purchase a certain amount of output at certain price and negotiates both simultaneously. This gives the bureau the opportunity to _____
a. minimize their effort b. extract all the legislature's consumer surplus from the bureau's output c. maximize the bureau's profits d. maximize the budget's producer surplus by extracting from the legislature large rents
The quantity at which quantity demanded and quantity supplied are equal for a certain price level is known as
a. equilibrium price. b. equilibrium quantity. c. equilibrium rate. d. equilibrium level.
Which of the following uses of tax revenues collected by the government leads to increased capital deepening in the United States?
A. providing food to a nation suffering from a famine B. foreign aid given to Mexico to build new schools C. higher salaries for members of Congress D. subsidizing airport construction in Seattle
The ratio of the change in consumption to the change in disposable income is the
A. marginal propensity to save. B. marginal propensity to consume. C. average propensity to save. D. average propensity to consume.