The money multiplier tends to be greater when:
A. individuals hold less cash.
B. individuals hold more cash.
C. banks hold more excess reserves.
D. the reserve ratio increases.
Answer: A
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The demand for money curve is drawn
A) holding several things constant, including the price level and interest rates. B) with interest rates on the vertical axis and the curve sloping down since lower interest rates mean the "price" of holding money has fallen. C) holding several things constant, including GDP and interest rates. D) with interest rates on the horizontal axis, and the curve sloping up since the "price" of holding money varies directly with the interest rate.
Some cities finance their airports with a departure tax: every person leaving the city by plane is charged a small fixed dollar amount that is used to help pay for building and running the airport. The departure tax follows the:
a. benefits-received principle. b. ability-to-pay principle. c. flat-rate taxation principle. d. public-choice principle.
The textbook argues that one of the trade-offs workers make is working for a small company or a large company. The small companies offer:
A.benefits that appeal to the workers that do not include job security or career advancement. B. job security but limited potential for advancement. C. both job security and ample potential for advancement. D. more potential for advancement but limited job security.
Which of the following is always correct?
a. Y - I = NCO b. NCO = NX c. NX = I d. All of the above are correct.