Positive Statements Are

question 34

Multiple Choice

Positive statements are

• A) evaluated by checking the facts.
• B) inefficient.
• C) rarely used in economics.
• D) unfair.
• E) value judgements.

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Definitions:

Money Multiplier

The ratio that measures the maximum amount of commercial bank money that can be created by a given unit of central bank money.

Fed

The Federal Reserve System, which is the central bank of the United States, responsible for monetary policy.

Bonds

Fixed-income investments representing loans made by an investor to a borrower, typically corporate or governmental, where the borrower agrees to pay back the borrowed funds with interest at a later date.

Money Multiplier

A factor that quantifies the amount of money the banking system generates with each unit of reserves.