In normal times, the actual money multiplier in the United States is:
A. sometimes negative during a recession.
B. approximately equal to 10.
C. approximately equal to 3.
D. 0 in the long run and 3 in the short run.
Ans: C. approximately equal to 3.
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For each Phillips curve, there
a. is no relationship between the short run aggregate supply curve. b. is many short run aggregate supply curves. c. is a unique long run aggregate supply curve. d. is a unique short run aggregate supply curve.
If a firm is not forced to take account of a negative externality it creates, it will produce the quantity at which
a. the marginal cost of production equals the marginal private benefit b. the marginal cost of production equals the marginal social benefit c. the marginal social cost of production the equals marginal private benefit d. the marginal social cost of production equals the marginal social benefit e. price equals marginal social benefit