If the required reserve ratio were 15 percent, the value of the monetary multiplier would be:

The following statements about the business cycle are correct except ______

A. it is a regular predictable cycle in real GDP around potential GDP B. from the peak to the trough, the economy is in a recession C. from the trough to the peak, the economy is in an expansion D. it is a periodic movement in economic activity including employment

Many environmentalists have advocated a substantial increase in the gasoline tax to cut down the federal deficit and to reduce pollution due to auto emissions. Such a tax increase would be devastating to people who commute significant distances to work. In fact, it would provide an incentive to relocate closer to work or change jobs. Economists refer to such effects of taxes as the

A. burden of a tax. B. regressive incidence of a tax. C. incidence of a tax. D. excess burden of a tax.