The banking system has just experienced an increase in deposits of $50,000. The currency drain ratio is 20 percent and the desired reserve ratio is 10 percent. What does the money multiplier equal?

When a firm hired its tenth worker, its factory output increased by four units per month. Would you expect the firm's output to increase by eight more units per month if the firm hired two more workers?

What will be an ideal response?

In the debate between equity and efficiency, _____ tend to favor efficiency, while _____ tend to favor equity

a. Keynesians; classicals b. monetarists; supply-siders c. supply-siders; Keynesians d. classicals; supply-siders.