If there is limited commitment and the government is no better at collecting on its debts than is the private sector, then
A) Ricardian equivalence holds.
B) the private sector can benefit from a government loan program.
C) Ricardian equivalence does not hold.
D) the Fisher relation does not hold.
A
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Which of the following statements is true?
A) The higher the required reserve ratio, the higher the deposit multiplier. B) The higher the excess reserves, the higher the deposit multiplier. C) The value of the deposit multiplier falls if economic agents withdraw cash from the banking system. D) The deposit multiplier only works to increase money supply, not to decrease money supply.
A person who is unemployed because of a mismatch between the person's skills and current employment requirements is experiencing
A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) seasonal unemployment.