The simple deposit expansion multiplier is really too simple for understanding the link between changes in a central bank's balance sheet and the quantity of money in the economy because it:
A. assumes banks hold excess reserves.
B. ignores changes in vault cash.
C. ignores how central banks could change their balance sheet.
D. ignores the fact people might change their currency holdings.
Answer: D
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Describe the changes in the variables that will cause the demand for a product to decrease, shifting the demand curve to the left
What will be an ideal response?
The quantity that a firm will supply in the short run
A. can be read from its average cost curve. B. can be read from its average variable cost curve. C. can be read from the firm’s marginal cost curve above average variable cost. D. is always zero above minimum average variable cost.
Consider the same ultimatum game as in the previous question but consider some new preferences reflecting a desire for fairness. In particular, now assume players get 1 util per dollar earned but lose 1/4 util for the absolute difference between their monetary payoffs. Which of the following is an offer that arises in a subgame-perfect equilibrium with these new preferences?
a. 1. b. 2. c. 4. d. 5.
"Because of unseasonable cold weather, much of the peach crop has been destroyed." This statement indicates that the:
a. price of peaches will fall. b. quantity of peaches that will be available at any given price has decreased. c. demand for peaches will shift to the left. d. quantity of peaches that will be available at any given price have increased.