As the reserve ratio decreases, the money multiplier
a. increases.
b. does not change.
c. decreases.
d. could do any of the above.
a
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Which of the following is a true statement about the multiplier?
a. The multiplier rises as the MPC rises. b. The smaller the MPC, the larger the multiplier. c. The multiplier is a value between zero and one. d. The multiplier effect does not occur when autonomous expenditure decreases.
An individual who continuously bids for securities that investors want to sell and offers securities that investors want to buy is known as a(n)
A) dealer. B) auctioneer. C) broker. D) underwriter.
Many rapidly developing countries in East Asia have pursued government policies, which encourage savings. According to the neoclassical growth model, if these policies stimulate savings but do not encourage technology growth, then these policies
a. will have no effect on the level of output. b. will increase output growth permanently. c. will increase output growth in the short-run, but not in the long-run. d. will have no effect on the growth of output in the short-run or the long-run. e. none of the above.
Tastes are starting to change for hybrid vehicles such that consumers are purchasing more hybrid vehicles and suppliers are choosing to produce more hybrid vehicles than they were five years ago
Due to the change in tastes, equilibrium price has fallen and equilibrium quantity has increased relative to the hybrid market from five years ago. What is the likely cause of this result? A) Supply increased by more than demand. B) Demand increased by more than supply. C) Demand and supply increased by the same amount. D) Only supply increased.