When there is excess aggregate demand, the appropriate fiscal policy would be for the government to
A. Increase the public debt.
B. Make budget deficits larger.
C. Make budget surpluses larger.
D. Make budget surpluses smaller.
Answer: C
Economics
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A given supply curve has a zero intercept. At the current equilibrium price the price elasticity of supply equals
A) 1. B) 0. C) 2. D) Not enough information is provided.
Economics
In order for the banking system to expand the money supply with a money multiplier effect, all of the money loaned out
a. has to have been demand deposits at some bank b. has to stay in one bank c. by one bank has to be deposited in the same bank d. has to be repaid before the multiplier process can work e. has to equal the amount of legal reserves for the banking system
Economics