Suppose you find $1000 in your attic and decide to deposit it all into your local bank, which must hold 20% as required reserves. The deposit expansion multiplier suggests that this $1,000 "injection" of new money will, in reality, most likely
A) increase the money supply by more than $1,000.
B) increase the money supply by less than $1,000.
C) increase the money supply by exactly $1,000.
D) increase the money supply by exactly $5,000.
A
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The social interest theory of regulation suggests that the political process and regulations will ________ and the capture theory of regulation suggests that the political process and regulations will ________
A) seek to minimize deadweight loss; serve the interests of the producers B) try to maximize the producers' economic profits; seek to minimize deadweight loss C) be unaffected by deadweight loss; increase the firms economic profits D) ignore producers' interests and concentrate on consumers' interests; seek to minimize firms' economic profits
Medicaid and food stamps are
a. available only to the elderly b. part of Social Security c. forms of in-kind assistance d. forms of cash assistance e. transfer payments to the poor