The money multiplier:
A. Is equal to the required reserve ratio times transactions deposits.
B. Gets larger as the required reserve ratio increases.
C. Is the reciprocal of the required reserve ratio.
D. Represents the lending capacity of an individual bank.
C. Is the reciprocal of the required reserve ratio.
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According to Keynes's absolute income hypothesis, if Record Swap store manager Brenda Nielsen and pop singer Madonna were each given $1,000,
a. Madonna would likely spend less of the $1,000 on consumption than Brenda b. Madonna would likely spend more of the $1,000 on consumption than Brenda c. Madonna and Brenda would spend equal amounts of the $1,000 on consumption d. Madonna and Brenda would save equal amounts over their lifetimes e. Neither Madonna nor Brenda would save any of the $1,000
Governments require immunizations of school children and offer immunization shots for free to low income people. An external benefit associated with immunization is:
A. the immunized staying well. B. one person being immunized does not prevent another from being immunized. C. a lower chance of epidemics. D. All of these