An increase in the required reserve ratio would be
a. a restrictive policy because it lowers the amount of total reserves in the banking system.
b. a restrictive policy because it lowers the amount of excess reserves in the banking system.
c. an expansionary policy because it raises the amount of total reserves in the banking system.
d. an expansionary policy because it raises the amount of excess reserves in the banking system.
e. an expansionary policy because it raises the amount of required reserves in the banking system.
B
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An optimum currency area functions best when labor is immobile from country to country
a. True b. False
The value of what is produced per worker, or per hour worked, is called ____________.
a. economic growth b. human capital c. productivity d. GDP per capita
Suppose that when disposable income increases by $2,000, consumption spending increases by $1,500. Given this information, we know that the marginal propensity to consume (MPC) is
A. 0.75. B. 0.25. C. 4. D. 1.33.
On an average, growth in per capita income is associated with a:
A) fall in inequality. B) fall in poverty. C) rise in poverty. D) rise in inequality.