Compared to IACs, LDCs are often characterized by:
a. lower life expectancy. b. lower adult literacy.
c. lower per capita energy consumption. d. All of these.
QUESTION 2Which of the following appears on the asset side of a bank's balance sheet?
a. Required reserve deposits.
b. Loans.
c. Excess reserves.
d. All of these.
QUESTION 3The spending multiplier effect is the result of a movement along the aggregate expenditures (AE) line.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 4Which of the following does not appear on the asset side of a bank's balance sheet?
a. Required reserves.
b. Checkable deposits.
c. Loans.
d. Excess reserves.
QUESTION 5Compared to IACs, LDCs are often characterized by:
a. higher life expectancy. b. higher adult literacy rates.
c. higher daily calorie supply. d. lower per capita energy consumption.
QUESTION 6If the marginal propensity to consume (MPC) is 0.90, the value of the spending multiplier is 90.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 7Which of the following compose the reserves of a commercial bank?
a. checkable deposits and time deposits
b. vault cash and deposits of the bank with the Federal Reserve
c. U.S. securities and stock equity
d. cash and U.S. securities
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