Equilibrium GDP could be upset by a change in

A. Any leakage or injection.
B. Leakages only.
C. Injections only.
D. Investment only.

Answer: A

Economics

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You decide to spend time studying for a philosophy exam, even though you have offers to go to see a movie, go out to dinner, or go to a poetry reading

This is a difficult choice for you because you really want to go to the poetry reading and would choose that over seeing the movie or going out to dinner. Your opportunity cost of spending time studying for your philosophy exam is A) going to the movie. B) going out to dinner. C) going to the poetry reading. D) all of the above, since you have offers to do all three

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If people never withdrew money, how much money could the banking system create given a new amount of deposits, assuming that excess reserves were zero?

A. zero B. as much as the new deposits C. the amount of new deposits multiplied by the reserve ratio D. the amount of new deposits multiplied by the money multiplier

Economics