D Question 12 Which of the following is the money multiplier? The required reserve ratio. 1/(1 -the required reserve ratio). 1/(required reserve ratio) 1/(1-MPC) D Question 13 Which of the following statements explains the vicious circle of poverty? By investing in education and infrastructure at the same time, the country can overcome the problems of poverty. Poverty arises out of the lack of investment, but countries cannot invest because they are poor A nation can shift its production possibilities curve inward by shifting more resources into the production of capital goods. A nation can shift its production possibilities curve outward by shifting more resources into the production of consumer goods. D Question 14 "More productive workers receive higher wages than less productive workers." This observation is a major flaw in which of the following arguments for protectionism? the infant industry argument the national security argument the employment argument the cheap foreign labor argument