Which one of the following factors will most likely cause an increase in aggregate demand?
A. An increase in net exports.
B. An increase in the real interest rate.
C. A decrease in net exports due to falling incomes abroad.
D. A technological development that decreases the cost of producing computer chips.
Answer: A
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If currency outstanding equals $500 million, checkable deposits equal $2 billion, reserves equal $200 million, and the required reserve ratio is 0.10, the money multiplier equals
A) 1.14. B) 3.57. C) 4.35. D) 5.
Which of the following has contributed to decreased concentration in U.S. industry since the 1970s?
a. rising interest rates and disinflation b. segmentation and economies of scale c. devaluation and economies of scale d. technological change and market globalization e. marginal cost pricing and product differentiation
In answering which of the following questions would you find it necessary to calculate a present value?
a. Should Jane put $1,000 today into a 5-year certificate of deposit that pays 4 percent annual interest? b. Should ABC Corporation buy a factory today for $2 million, knowing that the factory will yield the corporation $3 million after 5 years? c. If Jill puts $5,000 today into a bank account that pays 3 percent interest, then how much will she have in the account after 2 years? d. You would find it necessary to calculate a present value in order to answer all of these questions.
Refer to the information provided in Table 25.7 below to answer the question(s) that follow.Table 25.7
Refer to Table 25.7. The required reserve ratio is
A. 8%. B. 15%. C. 20%. D. 25%.