A critical assumption for the simple money multiplier (1/ rrd) to hold is that
a. banks do not hold excess reserves.
b. the public does not increase their level of currency holdings.
c. the required reserve ratio has to be greater than one.
d. both a and b.
e. all of the above.
B
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Which of the following is NOT included in the working-age population?
A) discouraged workers B) people waiting to be called back to a job after being laid off C) retirees under the age of 55 D) people in prison
A university conducts a survey of students, which shows that a 10 percent tuition hike would lead to a 7 percent decrease in the enrollment
If the university wants to increase its total revenue, it should ________ tuition because the demand for education at this university is ________. A) raise; elastic B) not raise; elastic C) raise; inelastic D) not raise; inelastic