Which of the following is the money multiplier?
A. The required reserve ratio.
B. 1/(1 - the required reserve ratio).
C. 1/(required reserve ratio).
D. 1/(1 - MPC).
Answer: C
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Suppose India and France have the same PPF, shown in the figure above. Based on their current production points, India's most likely future PPF is ________ and France's most likely future PPF is ________
A) PPF1; PPF1 B) PPF2; PPF2 C) PPF0; PPF0 D) PPF2; PPF1 E) PPF1; PPF2
In the United States, (gross) investment has fluctuated between ________ of GNP in recent years
A) 2 and 12 percent B) 11 and 22 percent C) 22 and 32 percent D) 32 and 42 percent E) 42 and 52 percent
In the efficiency wage model, if the real wage is higher than the market-clearing wage so that there is an excess supply of labor
A) firms will hire new workers at lower wages. B) firms will replace high-paid workers with low-paid, formerly unemployed workers. C) employers will not hire workers who are willing to work for a lower wage. D) firms will demand a higher level of effort from existing employees.
Refer to the table below. What is the value of A plus B plus C plus D (A + B + C + D) or the present value of the first four payments?
The above table shows a 5 year payment plan. Each payment is made at the end of the year, so after one year, a payment of $1,000 is made, after two years another payment of $1,500 is made and so on. The interest rate is 3 percent.
A) $6,200.50
B) $6,225.32
C) $6,436.27
D) $6,589.23