The actual money multiplier is:
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ANswer
usually smaller than the potential money multiplier.
the actual multiplier considers the cash drop by public, firms and
the actual reserve ratio
the potential money multiplier assumes there is no money drain and
all the money with banks.
The actual money multiplier is: a) usually smaller than the potential money multiplier. b) always equal...
The multiplier will be smaller, other things being equal: A. the smaller the fraction of each dollar earned that goes to taxes. B. the larger the fraction of each dollar of disposable income that is spent on imports. C. the smaller the fraction of each dollar of disposable income that goes to saving. D. All of these answers are true.
The ________ the marginal propensity to import, the ________ the expenditure multiplier. A. larger; smaller B. smaller; smaller C. larger; more negative D. larger; larger E. None of the above is correct, because the expenditure multiplier is not related to the marginal propensity to import.
Single concave spherical mirrors produce images that * (A) could be smaller than, larger than, or the same size as the actual object, depending on the placement of the object. (B) are always smaller than the actual object. (C) are always larger than the actual object. (D) are always the same size as the actual object. (E) are always real. --- If a radio transmitter has a vertical antenna, should a receiver’s antenna be vertical or horizontal to obtain the...
Is PA larger than, smaller than, or equal to pa? Explain. A B
9. SSg can never be a. Larger than SST b. Smaller than SST c. Equal to 1 d. Equal to zero 10. What does the standard error of the estimate measure? a. The variation around the regression line b. The explained variation c. The variation of the X variable d. The total variation of the Y variable
Actual aggregate expenditure is Select one: a. always equal to real GDP. b. only equal to real GDP at the equilibrium level of aggregate planned expenditure. c. never less than real GDP but can be greater than real GDP. d. never greater than real GDP but can be less than real GDP.
1) If Inventory investment is higher than firms planned, a) actual investment is greater than planned investment. b) actual investment is less than planned investment. c) actual investment must be negative. d) actual and planned investment are equal. Refer to the information provided in Figure 8.8 below to answer the questions that follow. Figure 8.8 2) Refer to Figure 8.8. The amount of planned investment decreases if the interest rate a) rises from 4% to 8%. b) remains at 8%....
Why is the multiplier for a change in taxes smaller than for a change in spending? a. A change in taxes has no effect on aggregate demand, only on aggregate supply. b. A change in taxes directly affects government spending as well, lowering the multiplier. c. A change in taxes affects spending directly, but at a slower rate than spending does. d. A change in taxes affects disposable income and then consumption rather than spending directly. e. All of the...
All else equal, the present value of a sum of money will be smaller the larger the interest rate. Select one: True False
22. Why is the multiplier for a change in taxes smaller than for a change in spending? a. A change in taxes has no effect on aggregate demand, only on aggregate supply. b. A change in taxes directly affects government spending as well, lowering the multiplier. c. A change in taxes affects spending directly, but at a slower rate than spending does. d. A change in taxes affects disposable income and then consumption rather than spending directly....