The bigger the money multiplier is the:
A. smaller the reserve ratio must be.
B. less a bank can loan out.
C. less money is created in the economy.
D. greater the amount of private demand for loans.
A. smaller the reserve ratio must be.
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Unions and employers use collective bargaining to negotiate
a. wages only b. wages and employee benefits only c. employee benefits only d. working conditions only e. wages, employee benefits, and working conditions
Macland’s government passed a law that requires businesses to give a year’s notice to any worker they want to fire and then to pay unemployment benefits for 6 months at the fired worker’s full salary. What will be the effect on the unemployment rate?
a. It will decrease as employers hire fewer workers. b. It will decrease as more people are willing to work. c. It will increase as employers hire fewer workers. d. It will have no effect on the unemployment rate.
The subprime mortgage bubble featured ____ leverage and the technology stock bubble featured ____ leverage
a. significant; significant b. significant; limited c. limited; significant d. limited; limited
How do we show the short-run impact of an increase in spending growth in our aggregate demand and aggregate supply model?
A. The AD curve shifts to the right, and inflation and real growth both decrease along the SRAS curve. B. The AD curve shifts to the right, and inflation and real growth both increase along the SRAS curve. C. The AD curve shifts to the left, and inflation and real growth both decrease along the SRAS curve. D. The AD curve shifts to the left, and inflation and real growth both increase along the SRAS curve.