An Effective Minimum Wage Ultimately Means That

question 40

Multiple Choice

An effective minimum wage ultimately means that:

• A) some unskilled workers have a difficult time finding a job.
• B) employers must encourage workers to apply for positions.
• C) employers will have difficulty finding enough workers for their positions.
• D) employees are generally guaranteed employment.

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Definitions:

Medium of Exchange

is an intermediary instrument used to facilitate the sale, purchase, or trade of goods and services between parties.

Money Multiplier

The ratio of the amount of money created by the banking system through loans and deposits to the amount of money injected into the economy by the central bank.

Money Multiplier

The ratio of the amount of deposits created by banks to the amount of the central bank's monetary base that has been injected into the economy.

100-percent-reserve Banking

A banking system in which banks keep the full amount of their depositors' funds in reserve, meaning they do not loan out any of the deposits but instead hold 100% of deposited money.