If the required reserve ratio is 0.25, what is the demand deposit multiplier?
a. 4.00
b. 0.50
c. 0.75
d. 1.33
e. 1.25
A
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Keynes referred to the sharp, often irrational, changes in the outlook of investors as the ________ of investors
A) primal needs B) crowd psychology C) animal spirits D) chaotic behavior
Government-backed deposit insurance ________
A) protects "good" banks from the misdeeds of "bad" banks B) is intended to encourage banks to pursue high-risk activities C) is an example of prudential regulation D) is an example of government-directed credit
The bowed-out-from-the-origin shape of the production possibilities curve occurs because resources are
a. equally well-suited to production of both goods b. not being used efficiently c. not always of equal quality and some are better suited to the production of one type of good than others d. increasing as more of one good is produced e. of an increasingly inferior quality
The budget deficit
a. is the value of the government's indebtedness at a moment in time. b. was $13.5 trillion in fiscal 2014. c. is the amount by which the government's expenditures exceed receipts during a specific time period. d. All of the above are correct.