Provisions in the budget that cause government spending to rise or taxes to fall without legislation when GDP falls are known as
A) primary deficit enhancers.
B) expansionary fiscal stimulus.
C) non-political fiscal policy.
D) automatic stabilizers.
D
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In an? economy, the currency drain is 5 percent of deposits and the desired reserve ratio is 2 percent of deposits. If the central bank buys? $100,000 of securities on the open? market, calculate the money multiplier.
______ demand is when the quantity demanded changes proportionately to price changes.
a. Perfectly elastic b. Unit elastic c. Perfectly inelastic d. Unit inelastic
Which of the following is an example of a public good?
A. a weather warning system B. a sofa C. a bottle of soda D. a television set
If the demand for a product rises and the supply stays the same
A) the market clearing price will fall and the equilibrium quantity will rise. B) the market clearing price will rise and the equilibrium quantity will fall. C) both the market clearing price and the equilibrium quantity will fall. D) both the market clearing price and the equilibrium quantity will rise.