To reach the maximum money multiplier, it is assumed that
A) there is insufficient loan demand.
B) all loans get redeposited in a checkable account.
C) loans are diverted into circulating currency.
D) commercial banks keep the amount of reserves. equal to total bank deposits.
B
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Hikers frequently claim that livestock grazing in the Wilderness Recreation Areas reduces the satisfaction of their recreational hiking experience. What is the economic explanation for this conflict?
a) Ranchers are insensitive to the recreational use of public lands. b) Grazing cows is a profit-generating activity, but hiking is not. c) Grazing cows create negative externalities that make hiking less pleasant. d) Hikers do not value livestock as much as ranchers.
A budget philosophy using fiscal policy to achieve the economy's potential GDP, rather than balancing budgets either annually or over the business cycle is termed as budget finance
Indicate whether the statement is true or false