If the banking system has $5 million in excess reserves and the required reserve ratio is 25 percent, what is the maximum amount by which the money supply can be increased?
A. $25 million
B. $20 million
C. $5 million
D. $2.5 million
Answer: B
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A straight-line demand curve along which the price elasticity of demand equals 0 is one that
A) forms a 45 degree angle with the vertical axis. B) forms a 60 degree angle with the horizontal axis. C) is vertical. D) is horizontal.
Suppose the United States has a Gini coefficient of 0.4 and Sweden has a Gini coefficient of 0.25. Which of the following statements is true?
A) Income distribution is changing faster in the United States. B) The distribution of income is more equal in the United States. C) Without information on population, it is not possible to compare income distribution between countries. D) The distribution of income is more equal in the Sweden.
The amount of money a firm pays to lease a building it uses for office space is called:
A) the full opportunity cost of production. B) an explicit cost. C) a real cost of production. D) an implicit cost.
Based on the answer above, the price for bus rides _____________ and the quantity demanded for bus rides ____________
a. Increase; increase b. Increase; decrease c. Decrease; increase d. Decrease, decrease