The economic impact of a change in spending, working through the multiplier, takes effect
A. immediately.
B. very quickly, with a small number of rounds of spending.
C. after a very long period of time.
D. after multiple rounds of spending occur.
Answer: D
Economics
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Suppose the desired reserve ratio is 20 percent and there is no currency drain. Then a $1 increase in the monetary base leads to the banking system to increase the quantity of money by
A) $0.02. B) $4. C) $5. D) $20. E) $2.
Economics
According to the new classical economics, predictable changes in aggregate demand
a. affect the level of real output. b. will not affect the level of real output. c. may or may not affect the level of real output. d. None of the above
Economics