In a fractional reserve banking system with no currency where res is the ratio of reserves to deposits, the money multiplier is
A) 1 - res.
B) 1 + res.
C) 1/res.
D) res2
C
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Which of the following are benefits created by the immigrants?
a. Increase in educational expenditures on public schools for their children b. Increase in the wages of unskilled laborers c. Reduction in costs for some firms d. Increased expenditures on health care for illegal immigrants at emergency clinics and hospitals e. Increase in the wages of skilled workers
One of the major insights by economist John Maynard Keynes about inventories and demand was that if planned inventories:
A. > actual inventories then demand was higher than anticipated. B. < actual inventories then demand was lower than anticipated. C. = actual inventories then demand was higher than anticipated. D. > actual inventories then demand was lower than anticipated.