If the reserve ratio is 8 percent, then a decrease in reserves of $6,000 can cause the money supply to fall by as much as
a. $48,000.
b. $75,000.
c. $55,200.
d. $10,800.
b
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The sales tax is generally considered to be a regressive tax.
Answer the following statement true (T) or false (F)
Economic benefits to nations in a currency union will be larger whenever:
A) the volume of transactions between the nations is larger and there is a greater degree of economic integration. B) the volume of transactions is smaller but there is a greater degree of economic integration. C) trade and financial flows between the nations are erratic. D) financial integration is lower but cultural integration is higher.
Consumer confidence affects the final price level of an expansionary policy. In this graph, what is the difference in price level between consumer confidence increasing and consumer confidence not increasing?
a. PL2 for consumer confidence increasing; PL1 for consumer confidence not increasing
b. PL1 for consumer confidence increasing; PL2 for consumer confidence not increasing.
c. PL4 for consumer confidence increasing; PL2 for consumer confidence not increasing
d. PL3 for consumer confidence increasing; PL4 for consumer confidence not increasing
The participation rate is the number of people:
A. employed and unemployed divided by the population aged 16 years and older. B. employed divided by the labor force. C. employed and unemployed divided by the labor force. D. employed divided by the population aged 16 years and older.