A reserve requirement of 5 percent implies a potential money deposit multiplier of
a. 5.
b. 10.
c. 20.
d. 25.
C
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap.
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
Explain the concept of "crowding in."
What will be an ideal response?
If the fixed costs can be ignored, a relatively good approximation of the correct transfer price is
a. average costs b. average fixed costs c. average variable costs d. the market price
Antitrust laws are designed to
a. preserve competition. b. protect the environment. c. protect the public's trust in the government. d. all of the above.