An increase in the expected inflation rate causes:
a. the velocity of money to increase.
b. the velocity of money to decrease.
c. the actual inflation rate to fall
d. the actual price level to decrease.
e. the money supply to increase.
a
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The formula for the deposit expansion multiplier =
A) 1 x required reserve ratio. B) 1 / required reserve ratio. C) 10 x required reserve ratio. D) 10 / required reserve ratio.
Refer to Scenario 3. The marginal cost of producing the sixth unit of output is:
A) $33.33 (approximate). B) $55. C) $200. D) $250.
Historically, the U.S. government seems to have ________
A) run budget surpluses as often as budget deficits B) generally spent less than what it collected in taxes each year C) had difficulty running budget surpluses D) not needed to borrow to finance wars E) none of the above
When does it make sense to offer a worker a piece-rate contract?
What will be an ideal response?