Assuming all excess reserves are loaned out, if the reserve ratio is 8 percent, the money multiplier will be equal to
A) 2. B) 8. C) 12.5. D) 16.67.
C
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Holding money to meet unplanned expenditures is
A) the precautionary demand for money. B) the transactions demand for money. C) the asset demand for money. D) the capital demand for money.
Refer to Table 17-3. What is the amount of profit added as a result of hiring the fourth worker?
A) $7,200 B) $1,200 C) $800 D) $400
Classical theory assumes: a. Say's Law
b. flexible prices. c. flexible wages. d. flexible interest rates. e. All of the above answers are correct.
In contrast to the United States, the European Union has chosen
A. greater wage inequality for lower unemployment. B. less wage inequality and lower unemployment. C. greater wage inequality and higher unemployment. D. similar wage inequality but more unemployment. E. less wage inequality for higher unemployment.