In a system in which all banks have a uniform reserve requirement, the money multiplier is equal to 1 divided by the required reserve ratio
a. True
b. False
Indicate whether the statement is true or false
True
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The Fed conducts an open market operation and increases a bank's excess reserves by $2,000
Explain the first five rounds of the money creation process if the desired reserve ratio is 25 percent and if people keep no currency outside of the banking system.
For a perfectly competitive firm at its long-run competitive equilibrium point
A) P = AR = MR = LATC = SATC = MC. B) P = AR = MR = LATC > SATC = MC. C) P = AR = MR = MC = LATC = AVC. D) P > MR > AR > MC > LATC > SATC.
The slope of the total production curve becomes:
A. steeper when marginal product decreases. B. flatter when marginal product decreases. C. negative when marginal product decreases. D. None of these is true.
Necessary conditions for price discrimination include: a. identical tastes among buyers
b. differences in willingness to pay among customers. c. easy resale. d. both (b) and (c)